Dubai: Old-world arguments by the fossil fuel industry that moving to renewable energies and low-carbon economies will never be monetarily warranted do not hold water, said a senior global energy official on the final day of the World Government Summit on Wednesday.
In fact, estimates show that in the long-term, the cost of adopting clean energies is only slightly higher, said Felipe Calderon, former president of Mexico and chairman of the Global Commission on the Economy and Climate.
Speaking to delegates, Calderon said latest statistics suggest that the transition to protecting the planet from climate change would cost roughly $93 trillion (Dh341.60 trillion), or $3 trillion more than the $90 trillion needed to maintain the status quo in the long run.
The incremental cost projection is small compared to the untold gains the world can gain ecologically from moving to wind and solar and doing away with global-warming petroleum fuels that heat the atmosphere, he said.
He said hundreds of billions of dollars spent on subsidising the petrocarbon industry can be reinvested in green energy for the future.
“You can get that money and momentum to lead the transformation to the new economy,” Calderon said. “You can, and must, diversify energy sources.”
Moving away from traditional energy economies and doing away with the consumption of coal does not mean businesses and industry will suffer declines, he said.
Calderon cited Sweden as an example, claiming that the country has witnessed economic growth of 60 per cent while reducing its national carbon footprint by 30 per cent.
The new fuel to propel global economies into the future, he said, can’t be found in the ground or in the air.
“Innovation is the most powerful engine for growth,” Calderon said. “Innovation is a secret weapon.”
