The direct and indirect benefits of climate-compatible growth
Assess and recognize both the direct and indirect benefits of climate-compatible growth
There is no globally accepted or widely applied methodology to quantify in monetary terms the benefits
of climate-compatible growth. For most economic activities, only the direct costs and benefits are
considered in making policy and investment decisions. Medium and long-term indirect costs and benefits
need to be properly identified and quantified in order to correctly value the benefits of policies and the
costs of inaction.
Sample Answer
Reduced greenhouse gas emissions: Climate-compatible growth strategies focus on reducing greenhouse gas emissions, which is essential to mitigate climate change. This can lead to a number of benefits, such as:
- Improved air quality, which can reduce respiratory illnesses and premature deaths.
- Reduced risk of extreme weather events, such as floods, droughts, and heat waves.