Calgary's Climate Crossroads: Navigating Economic Shifts and Strategic Investments
Global Economic Imperative: The $38 Trillion Challenge
Climate change is not just an environmental issue; it's a fundamental economic transformation. A 2024 study projects a staggering $38 trillion annual cost to the global economy by 2049, translating to a 19% loss of income per capita. These economic damages over the next 25 years are estimated to be six times greater than the costs of mitigating global warming. Risks include physical impacts from extreme weather and transition risks from shifting to a low-carbon economy, affecting asset values and insurance. Yet, many economists see investment in climate action as the "economic growth story of the 21st century," a vision Calgary is embracing.
Calgary's Strategic Investment in a Net-Zero Future
Calgary is responding to these global realities with ambitious local action. Following a 2021 Climate Emergency declaration, City Council approved the "Calgary Climate Strategy – Pathways to 2050," targeting net-zero emissions. This strategic blueprint projects a cumulative $87 billion investment by 2050, or $3.1 billion annually. Crucially, this is expected to create over 160,000 jobs and generate more than $60 billion in economic activity, alongside significant energy savings. The cost of inaction is dire, with direct annual economic impacts for Calgary potentially reaching $1.2 billion by 2055 without adaptation.
Building Resilience: Lessons from the Past
Provincially, Alberta’s "Emissions Reduction and Energy Development (ERED) Plan" aims for carbon neutrality, though recent changes to the TIER program have sparked debate. For Calgary, the devastating 2013 flood served as a critical turning point, profoundly influencing its climate preparedness. The "Calgary Climate Strategy" and its implementation plan are direct descendants of this experience, integrating climate considerations into city design, infrastructure, and public well-being to safeguard against intensifying natural catastrophes and bolster financial stability, as emphasized by global bodies like the Financial Stability Board.
