Presentation Summary

The two defining challenges of this century are overcoming poverty and managing climate change. If we fail on one, we fail on the other. Unmanaged climate change will destroy the relationship between humans and the planet. It would transform where we could live and how we could live our lives. On the other hand, if we manage climate change intelligently, we will launch a creative and innovative new energy-industrial revolution. It will be full of creativity, innovation, investment and job opportunities, and it must involve all countries and all sectors of the economy. It will involve doing things differently across the board, including using our energy more efficiently and embracing new technologies. Public policy is crucial for promoting the exciting new industrial revolution. Policy must be oriented towards fostering this new industrial revolution and overcoming a number of key market failures, including for greenhouse gases, innovation, networks and capital markets. The transition to the low-carbon economy will drive the growth story over the next few decades.