Domestic climate protection in accordance with the Paris Agreement would bring 8.8% GDP savings until 2030

By: Trademagazin Date: 2024. 01. 23. 11:35

The early introduction of the climate protection measures necessary to stay within the 1.5 degree global average temperature increase threshold by 2030 would mean significant income both at the EU and domestic level, with additional benefits that exceed the costs. This was shown in the recently published professional report of the Climate Action Network (CAN Europe), entitled “Economic Balance of the Paris Agreement”, in which the Association of Hungarian Conservationists contributed. Based on the modeling and calculation, the transformation of the fossil energy-based energy system in Hungary into an energy-saving, renewable energy-based climate-neutral system would bring more than HUF 5,280 billion in additional benefits, almost four times more than the Government’s climate plan until 2030.

According to the new professional report, Hungary can save 8.8% of its GDP by 2030 and create more than 50,000 new, permanent jobs if it increases its climate protection ambitions as soon as possible and accelerates the energy transition and decarbonization in order to achieve the agreed (so-called 1.5°C) target. More and better measures are needed in the field of energy conservation, switching to renewable energy-based energy production, grassroots community energy initiatives, development of public transport, and environmentally friendly reform of land use and forestry.

The report showed that in case of more ambitious climate protection in our country, the social benefits are also more significant than the EU average, especially in the health sector, where the cost of diseases and deaths due to exposure to airborne dust is the second highest in the EU in proportion to GDP. In case of development in accordance with the Paris Agreement, the Hungarian health sector can save more than HUF 720 billion by 2030, and the improved air quality will save the lives of 1,604 inhabitants per year.

The report draws attention: if the Government were to increase the efforts of the policy scenario (WAM) recently undertaken in the National Energy and Climate Plan under review to a level that meets the expectations of the Paris Agreement, it could save a net 138 billion euros by 2100. Based on the calculations, the additional benefits until 2030 will be approx. They amount to HUF 5,282 billion (EUR 13.9 billion). The cost of energy transition measures (WAM) planned in the Climate Plan until 2030 is approx. HUF 1,550 billion (EUR 4.06 billion).