Why Climate Action Is the Best Investment for the Future

A new report from Boston Consulting Group and the University of Cambridge’s climaTRACES Lab makes the numbers clear: the cost of inaction on climate change will far exceed the cost of acting today. Allowing global warming to reach 3°C by 2100 could reduce cumulative global economic output by 15%-34%. By contrast, investing just 1–2% of GDP in mitigation and adaptation could limit warming to 2°C, keeping damages to only 2–4%.

The math is stark and eye-opening. The net cost of inaction equals 11–27% of global GDP by the end of the century, which is equivalent to three times what the world currently spends on healthcare or eight times the amount needed to eliminate extreme poverty. Climate investments are not just necessary for prevention but also deliver strong returns. For every dollar invested in mitigation/adaptation, society could see $5 to $14 in avoided losses and added benefits.

Crucially, timing matters. Sixty percent of mitigation and adaptation investments must be made before 2050, even though 95% of the economic damage from inaction will occur after that point. In other words, delaying climate action dramatically increases future costs. This wake-up call is not just for governments and corporations; it applies at the household level too.

Families making proactive energy choices today also secure long-term savings, energy resilience, and contribute to reducing global warming.

At Borrum Energy Solutions, we see this play out through home-scale wind turbines that give Canadians a cost-effective way to generate their own clean power, reduce utility bills, and safeguard against climate-related disruptions. Choosing affordable, self-assembled microgeneration now delivers the same kind of high-return investment the global analysis highlights, protecting both wallets and the planet.