Canada’s road to net zero will cost $2 trillion — as much as a year’s GDP

The cost of transitioning Canada’s economy to net-zero emissions is pegged at $2 trillion over the next 30 years, but funds are available to finance the transition, according to the country’s largest financial institution. “In total, it seems like a daunting number, but when you break it down, it’s manageable for an economy like Canada,” said John Stackhouse, senior vice-president, office of the CEO at Royal Bank of Canada, and a co-author of the report released Wednesday. “We’re looking at $60 to $80 billion per year, that’s much less than we spend on health care, for example. It’s in line with what we aspire to spend on child care.” RBC released a report called “The $2 Trillion Transition: Planning for Canada’s place in a Net Zero world,” which plots out a possible course for the country to reduce its emissions in line with a net-zero emissions target by 2050 and budgets the cost of the shift. That’s roughly equivalent to Canada’s annual GDP last year, which stood at just under $2 trillion last year, according to Statistics Canada. All told, the Toronto-based bank believes the government and the private sector needs to spend $56.4 billion annually in six different sectors to meet its net zero targets.

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