The Global Commission on the Economy and Climate, a collective made up of executives, former prime ministers and finance ministers, has claimed that the world economy is at risk if politicians do not tackle climate change.
The Global Commission is chaired by former Mexican President Felipe Calderon and advised by Lord Stern, a former UK Government economist.
The report states "one key to safeguarding the climate is to change spending priorities for new infrastructure."
It advises that by adding 5% to the $6 trillion (or £3.7tn/4.6tn Euro) a year due to be spent on power and transport projects, more clean technology could be purchased. 5% would work out at roughly $600 billion (£370bn/460bn Euro).
The BBC have reported that "prices of wind and particularly solar power have plunged whilst pollution from fossil fuels now reduces global economic output by 4%." Such a drop in renewable energy prices means a more affordable source, however demand must be met, and currently, in the case of the UK power grid, that is not possible at this time.
Cedrec's take
For £370bn per year, it seems a large sum of money for a country that is still balancing an existing deficit. However, if the investment is possible, the idea that energy prices for the public drops is a beneficial one to our economy.
If more energy to heat our homes and run our appliances came from renewable, cheaper sources, that saving should, in theory, be passed to the consumer. That consumer then takes the money saved and spends it in areas that previously they could not. So a saving in one area could equal spending in the other.
In times of recession, the desire to keep whatever money you have to yourself is very appealing, however, this does end up affecting local businesses revenues and that in turn affects tax revenues. Recessions are vicious cycles, so if a saving can be afforded to consumers on their energy prices, we may be able to see a positive change in spending in businesses.
