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The net-zero transition: Its cost and benefits

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To decarbonize, lower-income countries and fossil fuel resource producers would spend more on physical assets as a share of their GDP than other countries—in the case of sub-Saharan Africa, Latin America, India and other Asian nations, about 1.5 times or more as much as advanced economies to support economic development and build low-carbon infrastructure. Developing countries also have relatively greater shares of their jobs, GDP, and capital stock in sectors that would be most exposed; examples include India, Bangladesh, Kenya, and Nigeria. And countries like India would also face heightened physical risk from climate change. The effects within developed economies could be uneven, too; for instance, more than 10 percent of jobs in 44 US counties are in fossil fuel extraction and refining, fossil fuel–based power, and automotive manufacturing. At the same time, all countries will have growth prospects, from endowments of natural capital such as sunshine and forests, and through their technological and human resources.

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