It estimated the cost of a 50% reduction in global carbon emissions by 2050 at around 3% of global economic growth, at the top of the 2%-3% range it estimated in 2006. This is slightly higher than the upwardly revised figure of 2% estimated by Lord Stern recently but PwC stresses that its forecasts are broadly in line with Stern and both are affordable.
"This is broadly equivalent to sacrificing around a year of global GDP growth between now and 2050," said John Hawksworth, head of macroeconomics at PwC. "In other words, reaching the same level of GDP in 2051 as might otherwise have happened in 2050." PwC has raised its projections for the amount of carbon that would be released between now and 2050 because it expects stronger economic growth in China and India over the next four decades, which in turn would lead to more use of energy and more carbon emissions.
….But PwC said politicians need to take action very soon. "We