profit in cutting emissions

Study finds profit in cutting emissions[FT}

Half the cuts in greenhouse gas emissions needed to make the world safe can be achieved at a net profit to the global economy, a study has found.

McKinsey, the consultancy, publishes a report on Thursday concluding that investment in energy efficiency of about $170bn a year worldwide would yield a profit of about 17 per cent, or $29bn.

This investment, encompassing only energy-saving measures that could be done quickly and at minimal cost, would also cut carbon dioxide emissions by about half the amount needed to stabilise the gas at about 550 parts per million, the limit of safety according to the Intergovernmental Panel on Climate Change.

The cost of tackling climate change has been hotly debated, with some economists arguing that immediate action to cut emissions would cost only a few per cent of future global gross domestic product, while waiting would be more expensive because of the need to adapt to the effects of climate change. Others say it would be cheaper to wait for low-carbon technologies, such as renewable energy, to come down in price.