Climate Economics Outlook: Technical progress outweighs political pushback

The push back against the costs of climate policy, alongside the fracturing of the global economy, risks raising the cost of the green transition and slowing progress reducing emissions this decade. Still, we think that in the long run, this will be more than offset by technological progress and economic incentives, which point to a faster reduction in emissions in later decades. The green transition need not hinder economic growth. Whereas we forecast the world economy to be almost twice as big by 2050, our baseline view is that greenhouse gas emissions will fall by about 40% over the same period.