Short briefing which calculates, based on methodology developed by the London School of Economics, what the costs of action and inaction would be for several EU scenarios. The briefing finds that current policies would lead to a GDP loss of 7.11%/year by 2100, while implementing the Fit for 55 proposals would lead to an annual loss of 2.58%. Opting for a real 1.5°C compatible pathway on the other hand would lead to an increase of GDP of 0.84%. The benefits of increasing ambition are thus also important in economic terms. In particular for future generations as they will foot the bill of our inaction.