Climate Co‑Benefits: The Role of Global Decarbonisation in Social Progress

This paper, authored by Alexandra Matthews and Sindhu Janakiram, argues that climate action, when pursued through a just‑transition framework and backed by rigorous impact assessments, generates immediate and measurable social benefits that can be more tangible than the long‑term climate outcomes themselves. By tracing the pathways from decarbonisation to poverty alleviation, food security and health, the paper emphasises that the twin goals of a low‑carbon economy and social progress are mutually reinforcing. The analysis also highlights the bidirectional nature of the relationship: failure to act on climate deepens inequality, while inequitable policies can erode political support for climate ambition.

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Three Sustainable Development Goals (SDGs) serve as focal points of the paper: 

SDG 1 – Poverty (including energy poverty, SDG 7 linkage) 

Energy Poverty

Energy poverty describes insufficient access to energy services including reliable electricity and clean cooking facilities. In high‑income contexts, affordability is the most prevalent barrier; in low‑income settings, physical access remains the primary obstacle.

Financial pressures from rising energy prices and cost-of-living strain produce “fuel‑or‑food” trade‑offs. Households in energy poverty often also face a poverty premium due to living in poorly insulated homes with inefficient energy systems.

Lack of access to affordable energy can lead to compromised nutrition, constrained education, heightened cold‑related mortality, and increased indoor air pollution from biomass combustion.

Poverty

Decentralised renewable technologies can reduce household energy costs by up to 50 % (IRENA). For example, subsidised solar installations in China’s Gansu province generate a guaranteed annual income of approximately 3 000 yuan (~$420) per household for 20 years, illustrating a scalable model for income security and local grid contribution.

Furthermore, renewable‑energy‑driven employment rose to 16.2 million jobs worldwide in 2023, with projections of 43 million positions by 2050, surpassing projected fossil‑fuel‑sector employment under net‑zero pathways.

SDG 2 – Zero Hunger

Reliable, low‑cost electricity expands irrigation capacity, mitigates reliance on diesel‑powered pumps, and stabilises water supplies for crop production.

Waste‑heat recovery from processing facilities enables thermal energy reuse for grain drying and climate control for crops.

Solar‑powered LED lighting and greenhouse systems extend growing seasons, improve yields, and support horticulture in marginal climates.

Agrivoltaic arrangements provide dual land use, delivering supplemental revenue through land‑lease agreements, while panel shading curtails evapotranspiration and protects livestock from extreme heat.

Renewable‑energy‑enabled cold‑chain logistics reduces post‑harvest loss, preserving nutritional quality and lowering food‑waste‑related emissions.

SDG 3 – Health

Clean electricity underpins heating, cooling, medical equipment reliability, and vaccine storage, directly influencing morbidity and mortality patterns.

Access to efficient heating reduces cold‑induced respiratory and cardiovascular events; access to renewable‑powered cooling mitigates heat‑stroke incidence and exacerbation of chronic conditions during heatwaves.

Electrified education facilities improve health literacy, fostering healthier behaviours and higher income prospects.

Renewable‑driven mobility enhances timely access to health services, particularly in rural contexts.

Clean cooking technologies diminish indoor particulate matter exposure, lowering respiratory disease prevalence.

Negative Externalities of Fossil‑Fuel Systems

Continued reliance on fossil fuels (accounting for ~80 % of the global energy mix), emit particulate matter, nitrogen oxides, and sulphur dioxide that exacerbate air‑quality‑related morbidity. Climate‑induced stressors – including heatwaves, altered disease vectors, food‑ and water‑insecurity, and population displacement – are projected to cause an additional 250,000 deaths annually between 2030 and 2050. These health burdens underscore the trade‑off between energy access and environmental risk when fossil fuels dominate the supply side.

Renewable Energy as a Health Lever

Renewable electricity generation avoids point‑source pollutants, enabling expansion of cooling and climate‑controlled healthcare facilities without aggravating local air pollution and exacerbating the climate crisis. Cross‑country analysis (1990‑2018) links higher renewable consumption to increased life expectancy, reduced mortality, and lower incidence of respiratory disease, indicating sustained air‑quality improvements beyond short‑term emission controls. Public perception surveys (e.g., Saudi Arabia) reveal strong associations between renewables and reduced respiratory illness, cementing renewable energy as a public‑health investment.

Illustrative Case Studies

Nextpower Inc. – Integrated solar trackers and software facilitated 57,318,063 MWh of renewable generation, averting 16,966,147 tCO₂e, 11,727 tNOx, 607 tPM₂.₅, and 15,968 tSO₂. The avoided emissions translate into measurable health co‑benefits through reduced pollutant exposure.

Lineage Cold‑Storage – Reduces food waste by ~5million metric tonnes. The lack of effective refrigeration led to the loss of approximately 526 million tonnes of food in 2017, accounting for 12% of global food production.

Barriers to Renewable Adoption in Agriculture and Energy Access

Key constraints include high upfront capital requirements, fragmented policy environments across energy, agriculture, climate, and water sectors, limited financial incentives, and insufficient technical knowledge among end‑users. Large‑scale renewable installations risk competing with productive land if spatial planning does not integrate land‑use considerations, especially in regions with scarce arable land.

Conclusion

Global decarbonisation, when executed through a just‑transition lens, functions as a catalyst for social progress across poverty alleviation, food security, and public health. Renewable energy systems deliver immediate co‑benefits that reinforce societal acceptance, policy support, and financing flows for climate action. Nonetheless, benefits are neither automatic nor uniformly distributed; misaligned policies can exacerbate inequality, while entrenched social fractures may erode climate ambition. Realising the full potential of decarbonisation requires integrated strategies that place social outcomes at the heart of climate planning, align investment with measurable impact metrics, and foster resilient, resource‑efficient growth for both people and the planet.

Important information

Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

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