Why Monetize Environmental Impact
Understanding the financial implications of environmental impact is crucial for creating sustainable business practices. When environmental costs are quantified, they become actionable data points for decision-makers.
The $2.27 Trillion GHG Challenge
These environmental impacts translate to significant financial costs across multiple sectors. Here's how the $2.27 trillion total environmental cost breaks down:
HEALTH
Climate change increases deaths from extreme heat, worsens air quality, and spreads disease. Warmer temperatures especially impact the elderly, children, and low-income communities. These health effects represent the largest share of carbon costs.
LABOR PRODUCTIVITY
Higher temperatures reduce workers' ability to perform physical labor, especially outdoors. This leads to lower economic output in sectors like construction and agriculture. Labor losses are a key cost in hotter, lower-income regions.
AGRICULTURE
Warming affects crop yields and global food supplies. While some areas may benefit short term, farming becomes less productive and more volatile on an aggregate basis. This leads to rising food prices and global economic ripple effects.
ENERGY
As temperatures rise, people use more energy for cooling and less for heating. This shift creates regional differences in energy demand and cost. Some areas may see savings, but most face rising electricity use and strain on power systems.
COASTAL DAMAGES
Rising sea levels cause flooding, destroy property, and force communities to relocate. These damages especially impact coastal cities and small island nations. Managing and adapting to sea level rise adds to the economic cost of carbon.