Mumbai: The combating of global warming could cost upto a whopping $3 trillion. However, given that the GDP of the world today is over $65 trillion , the amount is affordable, a top expert on global warming has said.
Shailesh Haribhakti, chairman of industry body Indian Merchant Chambers’ committee on ‘Combating global warming´ in a note said there are various estimates made on what might be the cost of achieving the 2050 target of 450 parts per million of CO2. These estimates range from $3 billion to $3trillion.
He, however, pointed out the world’s GDP today is over $65 trillion per annum on purchasing power parity basis.
“In the context of the threat to survival of the earth, even the upper end of the estimate is affordable seen against the global GDP and therefore must be spent,” he observed.
According to Haribhakti, while various governments have started articulating their national strategies to prepare for emission reductions, there is an urgent need to create a financial mechanism to facilitate reduction in CO2 emissions.
He said a Sovereign Climate Change Fund on similar pattern as that of a Sovereign Wealth Fund could be formulated to take care of research, development and deployment of clean technologies.
All activities related to adaptation and mitigation of climate change can be executed under the Sovereign Climate Change Fund, he said.