The G20 must press ahead with sustainable and inclusive growth

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global warming. The moment calls for addressing both issues. We believe that jump-starting sustainable and inclusive growth can improve the quality of life for people and be of aid to the planet.

This will not be easy—and it certainly will not be cheap. McKinsey estimates that reducing G20 emissions by half by the end of the decade, in line with the 2015 Paris Agreement, will require its members to invest $35 trillion towards closing the net-zero investment gap, over and above current spending. Lifting everyone to the empowerment threshold within the same time frame would mean boosting the spending power of the poorest segments by $21 trillion.

Together, this adds up to about 6% of the G20’s annual GDP. Economic growth is the single biggest determinant of how far we can get: Baseline economic growth of 2.5% paired with accelerating growth through higher productivity and innovation could bridge about half the G20’s combined empowerment and net zero investment gap. This would lift incomes, create many better- paying jobs, and ensure workers are equipped to step into them.

It would also expand the financing capacity to pay for the net-zero transition and spur innovation to reduce its costs. The private sector’s contribution is critical: Closing the empowerment gap without involving businesses would be impossible. In India, we estimate that growth and accelerating business-led innovation could close about 90% of the empowerment gap.

That would put us well within reach of delivering a decent standard of living for all by 2030. Businesses are also critical to the financing and innovation that the net-zero transition requires. Fortunately, there is momentum to build on.