Climate Crisis to Cost Global Economy $38 trillion Yearly

Inaction on SDGs to cost the global economy an extra $38 trillion dollars.

Inaction in advancing the implementation of the Sustainable Development Goals (SDGs) could cost the global economy an extra $38 trillion per year by 2050 at the current rate of progress.

This is according to renowned business leader, campaigner and author Paul Polman who has called on the Kenyan private sector to raise the level of ambition in advancing the global goals to move the country forward faster.

With the SDG financing gap at approximately $11–15 trillion per year, or four times greater than current spending levels, Paul Polman noted that the $38 trillion dollars is approximately 20% of the entire global economy and the longer we wait the more expensive it will become.

Polman was speaking during a leadership in action dialogue organized by Global Compact Network Kenya that brought together business executives and captains of industry to share progress and discuss practical strategies to achieve the SDGs.

Renowned business leader Paul Polman — Business leader Paul Polman

The dialogue spotlighted practical actions businesses can take with a multiplier effect in advancing gender equality and diversity, climate action, water resilience, finance, and Investment to drive inclusive growth & prosperity for all.

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As the co-author of “Net Positive: How courageous companies thrive by giving more than they take” Polman noted that the cost of inaction on the SDGs is significantly higher in Africa than any other part of the world, currently estimated at between $8-$9 trillion per year.

“It only costs us $4.5 trillion a year to implement the SDGs and the longer we wait the more expensive it becomes”, He noted.

Paul Polman on Climate Crisis

On the climate emergency, Polman noted that the pace of action is not sufficient to reverse the worst impacts of the changing climate, warning that without strong leadership, global temperature will surpass the 1.5°C above pre-industrial levels to levels as high as 2.5℃ to 2.9℃ degrees, on the current trajectory.

Polman also called on the Kenyan business community to embark on responsible social cooperation noting that, by the end of 2050-2060 we will have over 1 billion climate refugees globally and therefore we must act now by moving to a sustainable business model that is regenerative and restorative.

Polman called on the leaders present to rise to the occasion and lead from the front by starting to address climate change and inequality in the country.

“This is the best moment to be a leader as we can really show our leadership and address climate change and inequality” he said.

Also Read: IMF Warns of Decline in Africa’s Economic Growth Amid Superpower Pressure

Investment on Climate Initiatives

He also noted that return on investment on climate initiatives are profitable as a company could get as much as 12 times on their investment.

With only 15 % of the SDGs on track, Global Compact Network Kenya Executive Director Judy Njino noted that the Forward Faster initiative represents a bold and ambitious commitment by the UN Global Compact to catalyze transformative action towards the achievement of the goals.

“The Forward Faster initiative provides a roadmap for action, outlining key areas where business leaders can make a difference. This includes promoting responsible business practices, advancing gender equality and diversity, combating climate change, and fostering inclusive growth and prosperity for all” she said.

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