Bank of America Global Research has a pretty interesting primer on what "net zero carbon" means, and the ins and outs of getting there -- or not. Summary here. Report here.
From the report:
Net zero carbon refers to the point where the total amount of carbon added to the atmosphere is equal to the amount removed. Most experts say we need to achieve net zero carbon emissions by 2050 if we are to manage global warming. The report addresses questions like:
- Is reaching net zero even possible? Yes. And the capital is available.
- What sort of impact would net zero have on nations and their respective economies? It'll be expensive, but not as expensive as doing nothing. Can we spare 0.4% GDP per year to save the planet? The IEA’s Net Zero scenario would require a $5 trillion annual energy sector investment by 2030 – double that of the average 2016-20 spend of $2.3 trillion – but $4.5 trillion per year by 2050 after the higher upfront investments are made. Net zero investments could produce as many as 42 million green economy jobs, according to the International Energy Agency — as well as a habitable planet.
- How do the costs of reaching net zero compare with the costs of doing nothing? While the task ahead is enormous, the potential consequences of inaction are even greater. Failing to combat climate change could, by 2030, account for a loss of more than 3% of global GDP. By 2100, that number could grow to $69 trillion, and 5% of the market value of global equities — the equivalent of $2.3 trillion — could be wiped out permanently.
- Will a carbon tax be required? Yes, an average of $150/t expected over 20 years to achieve required emissions reductions, with the price by 2040-50 influenced by carbon capture effectiveness.
- How will net zero impact business and consumers? The majority (60%) of emission reductions will require the active involvement of consumers/businesses (e.g. switching to electric cars, heat pumps)
- What could go wrong? Behavior change, finance, lack of global compliance and how to monitor and track emissions reduction are key challenges to deliver net zero.
Read the Summary here. Report here.