This is how climate change could impact the global economy
- Climate change could wipe off up to 18% of GDP off the worldwide economy by 2050 if global temperatures rise by 3.2°C, the Swiss Re Institute warns.
- Forecast based on temperature increases staying on the current trajectory and the Paris Agreement and net-zero emissions targets not being met.
- Figure could rise to 18% of GDP by mid-century if temperatures increase by 3.2°C in the most severe scenario.
- Climate change is a systemic risk that must be addressed now, warns Swiss Re.
The global economy could lose 10% of its total economic value by 2050 due to climate change, according to new research.
The report The economics of climate change: no action not an option, published by the Swiss Re Institute, said the forecast was based on temperature increases staying on the current trajectory and Paris Agreement and net-zero emission targets not being met.
However, it also warns that this figure could rise significantly to 18% of gross domestic product (GDP) by mid-century if no action is taken and temperatures rise by 3.2°C.
Assessing climate resilience
The Swiss Re Institute’s Climate Economics Index stress tests how global warming will affect 48 countries – representing 90% of the world economy – and ranks their climate resilience.
It lays out the expected impact on global GDP by 2050 under four different scenarios compared to a world without climate change. These are:
- 4% if Paris Agreement targets are met (a well-below 2°C increase)
- 11% if further mitigating actions are taken (2°C increase)
- 14% if some mitigating actions are taken (2.6°C increase)
- 18% if no mitigating actions are taken (3.2°C increase).#globalwarming #climatechange #carboncompensation #bluesky #climateemergency #climatecrisis #blueskye #blueskyefoundation #compensate #greentechexchange #zerocarbon #climatenews #blueskyelife #elonmusk #billgates #greentech #nasa #nasaclimate #greenfacts
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