Step 11 — Economic Cost

Scope & Jurisdiction

Climate Target

Energy Deployment

Land & Natural Capital

Policy Design

Technology Portfolio

Gap Accounting

Uncertainty

Physical Climate Risk

Adaptation

11 Economic Cost

12 Fiscal Risk

13 Finance & Investment

14 Just Transition

Test

Step 11 — Economic Cost

The DSGE macro model shows the GDP trajectory, inflation impact, and investment surge implied by the required carbon price computed in Step 5.

From Step 7: Required carbon price: $/t B₂₀₅₀: Gt

Macro Scenario

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GDP impact 2050 (% vs baseline)

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Peak Carbon Price ($/t)

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Inflation Impact (pp)

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Investment Surge ($Tn)

Report use: GDP impact and investment surge feed into the final report's economic cost panel. Carbon price is shown against the Step 4 computed requirement.

GDP Trajectory vs Baseline

Carbon Price & Inflation Path

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