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Impact of the Financial Crisis on Carbon Economics

Version 2.1 of the Global Greenhouse Gas Abatement Cost Curve.

14/09/2010
McKinsey & Company
McKinsey & Company
Impact of the Financial Crisis on Carbon Economics McKinsey has updated its global greenhouse gas (GHG) abatement cost curve with a new baseline that reflects a post-crisis belief about the development of the global economy and associated emissions. The overall conclusion of this update is that the crisis has had relatively little impact on the greenhouse gas abatement challenge, and that the main messages and implications from our 2009 report ‘Pathways to a low-carbon economy’ have not changed substantially. The global business-as-usual emission projection for 2030 has dropped by only 6 percent relative to the pre-crisis estimate. The total abatement potential remains essentially the same. Emission reductions might become cheaper in relative terms as a result of higher fossil fuel price expectations by the external agencies that we rely on for the baseline forecast.

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