The Cost of Inaction 2024

Transition is underway – at different speeds FIGURE 15 Price of carbon around the world,1 $/tCO2eOil demand evolution, % change from 2018 to 2023 <$20 $20-$40 $40-$60 $60-$80 >$80Price range >12% 4 to 12% -4 to 4% -12 to -4% <-12%Demand evolution De facto ban of new ICE passenger car sales,2 target yearCountries phasing out operating coal plants, target year 2025 2030 2035 2040 2050Target year No existing coal3 2030 or earlier 2031-2040 2041-2050 Under discussionTarget year 1. Map shows jurisdictions with carbon taxes or emissions trading systems implemented, under development or under consideration. 2. Map shows jurisdictions with set targets, signed pledges or announced plans to phase out sales of gasoline and diesel cars by a concrete date. Governments include national, provincial and state governments; China and US have phase-out targets in specific provincial and state governments only. 3. No existing coal due to no legacy coal, regulation already pushing for phase-out, operators deciding to shut down platforms. Sources: World Bank Group, Energy Institute, International Council on Clean Transportation (ICCT), A2Z Coalition, Coltura, Statista, Powering Past Coal, Beyond Fossil Fuels, Bloomberg Global Coal Countdown, BCG analysis. The Cost of Inaction: A CEO Guide to Navigating Climate Risk 24