Official statements or reports from the United Nations Framework Convention on Climate Change (UNFCCC)

NBER Study: OPEC's Market Power Cuts Emissions by 67 GtCO2, Saving $4 Trillion, Aiding Paris Targets

Nov 4, 2024, 01:10 PM

A new study by the National Bureau of Economic Research (NBER) reveals that OPEC's market power has significantly contributed to environmental benefits. The study highlights that OPEC's influence led to a reduction of over 67 gigatonnes of CO2 emissions, equating to $4,073 billion in climate damages. This reduction accounts for 17.8% of the carbon budget needed to meet the 1.5°C target set by the Paris Agreement. The environmental benefits of OPEC's market power are said to outweigh the welfare loss from distorted production allocation. Additionally, OPEC is potentially the single biggest contributor to meeting the Paris targets.