A European Union target to slash greenhouse gas emissions 20% by 2020 could cost the bloc up to €1.1 trillion ($1.5 trillion), according to a new study by consulting group McKinsey & Co.
The study, entitled „A cost curve for greenhouse gas reduction,” was described in the Tuesday edition of Germany daily Die Welt. „We expect, based on a well-balanced, sensible use of available environmental protection technologies, annual costs of between €60-80 billion out to the year 2020,” the newspaper quoted McKinsey & Co. energy expert Thomas Vahlenkamp as saying. That would result in total costs of between €800 billion ($1.06 trillion) to €1.1 trillion ($1.46 trillion) over the next 14 years. EU leaders agreed at a summit in Brussels in early March to cut carbon dioxide (CO2) emissions that have been blamed for global warming by 20% by 2020 and by 30% if other big polluters outside the bloc join in. The 27-nation club also plans to increase renewable energy sources, but has yet to address the sticky issue of how these goals would be divided up between the member states. (reuters.com)