European Union's climate change goals will cost €1 trillion

The EU's new climate change goals will cost up to €1.1 trillion (£747bn) to implement over the next 14 years, according to a new study.

The most comprehensive investigation on managing the economics of climate change paints a daunting picture of the EU's plan to decrease greenhouse gases by at least 20% by 2020.

But the study by the consulting firm McKinsey published in a German newspaper yesterday, argues it is both economically and technically possible to reduce emissions on schedule, but that the political effort necessary will be immense.

On the basis of a balanced, sensible application of the most easily accessible technology, we're calculating that the EU states will face annual costs of between €60bn to €80bn up until 2020," said Thomas Vahlenkamp, a McKinsey energy expert.

The study says that technology, such as energy-saving lightbulbs and windpower, is capable of reducing three-quarters of greenhouse gas emissions.

To achieve cost-effective results, the study advises that politicians concentrate on implementing the cheapest and most effective environmental measures first, rather than the cost-heavy solutions such as building CO2-free coal power stations. "The potential in building insulation should be given much more attention," Mr Vahlenkamp said. "There is a wealth of cost-free possibilities that would neither negatively effect our lifestyles nor our comfort."

The Guardian