Deloitte Deputy CEO Alicia Rose joins Yahoo Finance Live to discuss the economic incentives for companies to adopt decarbonization, how climate change initiatives are projected to create jobs, and areas in which environmental solutions open up funds for solving other issues.

Video Transcript

ADAM SHAPIRO: We want to bring into the stream Alicia Rose, Deloitte's Deputy CEO. Because Deloitte is out with a new report, The Turning Point, A New Economic Climate in the United States, and two key points that we want to begin discussing with Alicia Rose. One, the report says that the United States economy could gain $3 trillion if it rapidly decarbonizes over the next 50 years. On the flip side, if we don't, we face economic losses of $14.5 trillion.

Seems like an obvious choice ahead of us. But it is so hard. When you say decarbonize now, what does that look like?

ALICIA ROSE: Yes. Thank you very much for having me, Adam and Emily. You've highlighted two of the key points. Let me share some of the context of the report. It is a macroeconomic analysis. And it's comparing two potential climate scenarios. The two scenarios are one, where the climate rises 3 degrees, and scenario B where the actions are taken to keep climate rises close to 1.5 degrees as possible. And it starts to look at the what ifs. You've highlighted two of the key points.

One is that unchecked climate change, or insufficient action, that action in scenario A is a costly choice for the US. Over the past 50 years, the US has already had $1.4 trillion in economic losses due to weather related hazards. And in fact, in 2021 alone, there were 20 separate billion dollar events. And our analysis shows that a rapid transition to net zero could truly drive a new Industrial Revolution and jump start growth in the US economy in the long term.

You've highlighted, again, that if we're able to keep climate change to below 2 degrees and we take that once in a generation transformation, we could see $3 trillion added to the economy, more than one million new jobs that otherwise wouldn't have existed compared to a world where climate change goes unmitigated.

EMILY MCCORMICK: Alicia, thank you so much for joining us. Does avoiding this $14 and 1/2 trillion negative impact to the economy in the next 50 years require global coordination on climate change? Or could this be done through US policy changes alone?

ALICIA ROSE: It absolutely requires global coordination. Our report is focused specifically on the US although we've released two other turning point reports, one around Asia-Pacific, and one around Europe. It will take global coordination.

ADAM SHAPIRO: I hear you. And I'm thinking about, is it the Chinese now burn more coal than we do in the United States? How do you get-- we still refer to the Chinese economy as an emerging market. But how do you get a country with the world's largest-- no, India has the largest population, second largest population to coordinate with everyone else on an issue like that?

ALICIA ROSE: Well you've named the three largest emitters, US, India, and China. And it will-- again, it starts with a conversation. It starts with data that we've specifically done this in three separate reports so that each country or region can take a look at itself and understand the opportunity in its own country and start to drive it so that when we come together, there is that coordination and we're able to achieve that net zero by 2050.

EMILY MCCORMICK: In the US, what do you think is the biggest hurdle to implementing this rapid decarbonation right now-- decarbonization rather right now?

ALICIA ROSE: Absolutely. When we talk with organizations, and we've done a study actually. Our 2022 CXO sustainability report, which surveyed 2,000-- more than 2,000 CXOs in 21 countries. They do list a number of obstacles. Some of it is actually the difficulty in measuring the environmental impact of their own organizations. Some of it's the insufficient supply of sustainable and low emissions inputs in their own value chain.

And so there are a number of obstacles. But listing those does not change the need to actually push forward in order to achieve really the turning point that we highlight in the report of 2048. We really need to take action and start now.

ADAM SHAPIRO: I realize the report is based on an assumption and then what ifs based on that. But there are real world things happening, for instance, Miami beach, where they are raising the roads. Right now because they have flooding issues when it rains too much and all of the other issues. But that's money being spent to raise roads that's not being used elsewhere. Has Deloitte taken a look at the cost already to us in the United States as we have to take steps to mitigate future potential climate problems, and how that money's not being used in other ways that might help productivity or efficiency in other areas?

ALICIA ROSE: Absolutely. Our economic analysis, again, outlines sort of two scenarios. And it does take into account current costs being spent and actually looks forward at the benefits that can incur that the economy will gain based on that spend that you put into the system right now. I would say also recognizing that there is spend and concern right now, there are always going to be economic risks and pressures at any given time.

And we're going to have to manage both. And again, any delay in increases-- any delay really increases the overall cost of the transition and pushes out the timing of that turning point where the gains actually exceed the cost.