On Monday, the LSE published a high-level summary of the independent report, ‘G7 leadership for sustainable, resilient and inclusive economic recovery and growth‘, led by Professor Lord Nicholas Stern. The report has been requested by the UK Prime Minister for the G7.
Key message
The report argues that the transition to a zero-emissions and climate-resilient world provides the greatest economic, business and commercial opportunity of our time. It calls on world leaders to align behind a coordinated green recovery from the COVID pandemic. It points to the attractiveness of investment in low-carbon solutions in delivering recovery, growth and innovation, and in tackling systemic threats of climate change, biodiversity loss and environmental degradation. In the wake of the COVID-19 pandemic, the G7 should embark on further joint actions for a safer, stronger, healthier and more dynamic world.
SYSTEMIQ’s analysis
SYSTEMIQ’s support focused on the investment opportunities in meeting such a vision. Our work built on a central finding of the Paris Effect report – that low-carbon solutions are increasingly competitive and those who fail to invest in future industries will miss out. SYSTEMIQ provided estimates of the size and attractiveness of investment in these solutions globally and in key geographies, and policy recommendations to address barriers to investment. It looks at:
- the scale of low-carbon investment opportunities in energy, agriculture, food and land use, adaptation and resilience to 2030
- geographic breakdown across advanced, emerging and developing economies, China and the G7,
- key features of attractiveness of these investments,
- barriers to investment and policy levers to address these
Based on our work, the report states that G7 countries should collectively invest ~$1 trillion a year over the next decade to ensure their economies recover fully from the pandemic and to transition to sustainable, inclusive and resilient growth. And globally, there is a ~$3 trillion p.a. investment opportunity in low-carbon solutions.
Next steps
The Report Summary has been well-received by key stakeholders in the UK Government and across the G7. A full report and technical note will be released in the coming weeks. We are now working to translate our findings to support additional outputs by the cross-organisational team.
Read the report summary here
