Countries and companies worldwide have made commitments to get to net zero. But there’s another challenge of equal scale that demands the same urgency: addressing poverty in a decisive way. These goals are linked and have to be tackled in tandem.
This isn’t just our own opinion. At the recently concluded Group of 20 summit, leaders of some of the world’s largest economies issued a declaration affirming that “no country should have to choose between fighting poverty and fighting for our planet.” Soon after, the World Bank unveiled an expanded mission: “To end extreme poverty and boost shared prosperity on a livable planet.”
The McKinsey Global Institute’s latest research puts dollar figures against these existential and converging objectives. And there’s no denying that those figures are daunting. People who cannot meet all of their basic needs sufficiently today would need an additional $37 trillion in spending power, cumulative over the decade. Simultaneously, the world needs to invest $41 trillion more in low-emissions technologies by 2030, over and above current spending levels.
About the authors
Anu Madgavkar
Anu Madgavkar is a partner at the McKinsey Global Institute, the business and economics research arm of McKinsey & Company. She leads global research focused on sustainable and inclusive growth; labor markets, human capital, and the future of work; technology’s economic impact; digital and financial inclusion; and gender economics. Formerly based in Mumbai, she now is based in New Jersey.
Lola Woetzel
Lola Woetzel is a senior partner at McKinsey & Company and a director of the McKinsey Global Institute based in Shanghai. She leads research on China, Asia, and global economic and business trends and the climate and helps cities and regions create sustainable growth.
