As authorities in the field of climate change, we are frequently questioned about the state of our planet, and surprisingly, our response leans more towards optimism than despair. There is a crucial but often overlooked energy transition in progress, coupled with increasing investments in adaptation measures to enhance resilience against extreme weather events. While global efforts to meet climate goals are falling short, recent developments indicate a potential for substantial change and lay the groundwork for broader initiatives.
In the midst of escalating climate-related disasters, there is a noteworthy achievement in the United States, where greenhouse gas emissions decreased by 17 percent between 2005 and 2021, despite the economy doubling in size. The costs of solar and wind energy have plummeted by 70 percent and 90 percent, respectively, in the last decade, constituting 80 percent of new electricity generating capacity this year. The sale of electric vehicles is also on the rise, with over 1 million units sold in 2023, marking a 50 percent increase from the previous year and accounting for one in every ten new vehicle purchases.
These positive trends are further supported by favorable public policies at the state level and the federal level’s Inflation Reduction Act (IRA). The IRA aims to reduce the costs of renewables, electric vehicles, heat pumps, and other low-emission technologies, with projections indicating a potential halving of U.S. emissions by 2035, accompanied by significant cost savings for households.
The combined effect of declining clean energy costs and additional climate policies is contributing to a reduction in the anticipated global warming from 3.5 degrees Celsius to 2.4 degrees this century. While this progress falls short of meeting the Paris Agreement target, it reflects a significant step forward in making climate action more economically viable worldwide.
However, acknowledging these advancements does not diminish the alarming impacts of climate change. The consequences of historical emissions are increasingly evident, with climate-fueled events occurring more frequently and with greater severity. Records for global surface temperatures, Antarctic sea ice loss, ocean temperatures, extreme flooding, heatwaves, and wildfires have been shattered, causing substantial adverse effects on individuals, assets, ecosystems, and institutions.
In the U.S., households are grappling with climate-related increases in medical expenses, food prices, insurance premiums, and home repair costs. Research has also shed light on less-appreciated impacts on mental health, school performance, and crime. Government resources are stretched thin by spending on disaster response and wildfire suppression, further compounded by decreased tax revenue.
The magnitude of these impacts hinges on uncertainties related to climate variability, technological advancements, behavioral responses, and differential vulnerability, posing an economic burden on a generally risk-averse society. Additionally, there are stark disparities in the distribution of harm and benefit concerning climate change responses, with marginalized communities facing increased risks due to unequal exposure and fewer resources for adaptation.
Effectively mitigating climate impacts requires an accelerated transition of energy and food systems, coupled with investments in infrastructure and nature-based solutions that promote resilience. Despite emissions reduction efforts, adaptation remains essential, especially as the U.S. warms 60 percent faster than the global average. Adaptation initiatives hold the potential to safeguard lives, improve quality of life, and restore vital natural ecosystems.
Engaging affected communities through participatory processes can advance more equitable adaptation decision-making. Climate-informed markets may further support these efforts, emphasizing the importance of accurate risk information to protect homeowners and municipalities from equity loss and price deflation due to climate-driven housing bubble risks.
While incremental adaptation measures are underway, addressing severe impacts may necessitate transformative actions such as redesigning buildings and updating infrastructure standards. In 2020, global spending on adaptation efforts amounted to only one-tenth of what was allocated for emission reductions. Thoughtful investments in public infrastructure, community resilience, and adaptation serve as crucial complements to decarbonization efforts.
The future of our climate is in our hands. We are in a narrow window where the severity of the problem is known, yet there is still time to act. The reason for optimism lies in our ability to collaboratively work towards reducing emissions, strengthening resilience, motivating adaptation, and advancing equity.