Clean Air as an Asset - Strengthening the Economic Case for Action on Clean Air

The costs of air pollution are significant. The World Bank estimates the health damages caused by air pollution amount to USD 8.1 trillion a year, or 6.1% of global GDP. Meanwhile, according to OECD, the annual number of lost working days as a result of outdoor air pollution is projected to reach 3.7 billion by 2060 (currently around 1.2 billion). This in turn affects productivity.
 

Although alarming estimates like these exist, the full economic case for investing in clean air is not being made convincingly or consistently enough to finance ministries and development funders. The result is significant underinvestment in tackling air pollution.

A stronger case needs to be made that cost-effective opportunities to cut polluting emissions are available and must be accelerated at scale to advance public health and well-being. The clean air benefits of the energy transition are a major part of this business case — especially as they almost all accrue locally, whereas the health and economic benefits are more distributed.