Can the World Pay for a Green Economy

With the cost of moving towards a global green economy estimated at somewhere between US$1.05 and US$2.59 trillion dollars, the obvious question is whether or not it is financially feasible to make the transition without creating more severe economic dislocations. This question is particularly pressing given the degree and persistence of economic crisis in the United States and Europe, traditionally the two centres driving technological and industrial innovation. The purpose of this report is first to set out some of the global financial realities that might influence the macroeconomics of pursuing a green economy. Attention will then be turned to different policy avenues that governments might pursue to move towards a green economy, focusing on the challenges to such a policy shift.Ultimately the paper will conclude that the economic and technological resources for a shift to a green economy do exist, but that making such a change is a question of political will.