Containing the global temperature rise within the relatively safe 2°C increase threshold would cost less than the sum that will be spent for rebuilding the areas damaged by hurricane Sandy in the United States. This is a finding of the new Green Investment Report "The Ways and Means to Unlock Private Finance for Green Growth" published by the World Economic Forum in January 2013.

According to the report, in recent years global investments for a green growth have already increased significantly, but the current trend would not be enough and the world is on track for a global average temperature increase of at least 4°C above pre-industrial levels.

Additional investments are needed, of at least US$ 700 billion per year, in the fields of clean energy infrastructure, low-carbon transport, energy efficiency and forestry. However, public resources are limited and more attention must be paid to attracting private finance. Since every dollar spent by public administrations in green actions can attract 4-5 dollars from private investors, it has been calculated that it would be sufficient to increase the global public expenditure by 36 billion dollars every year (less than the 50 billion settled for the hurricane damages) to raise the necessary amount of money and meet the climate change challenge.

The transition to a green economy is therefore financially viable, and the costs of greening growth are insignificant compared with the costs of inaction. However the governments must provide appropriate guarantees and incentives, combined with the right policy support.

The report is available for download at the World Economic Forum website