Climate change driven by existing CO2 emissions is projected to shrink the global GDP by approximately $38 trillion by 2050, representing nearly a fifth of the current economic output, according to recent research published in Nature.
Despite aggressive efforts to reduce carbon pollution, the economic fallout from climate change remains significant. The study highlights that without swift action, the planet could warm significantly beyond 2 degrees Celsius above mid-19th century levels, leading to devastating impacts such as intensified heatwaves, droughts, floods, and more destructive tropical storms fueled by rising sea levels.
The researchers emphasize that while immediate reduction of greenhouse gas emissions is essential, it is also crucial to prevent even more severe economic damages beyond mid-century. They found that the annual investments required to keep global warming below the 2-degree threshold—a core objective of the 2015 Paris Agreement—are substantially lower than the potential damages avoided.
Max Kotz, lead author and an expert in complexity science at the Potsdam Institute for Climate Impact Research (PIK), stated, \"Staying under the 2 degrees Celsius threshold could limit average regional income loss to 20 percent, compared to 60 percent in a high-emissions scenario.\" This stark contrast underscores the economic imperative of addressing climate change proactively.
The study also reveals a divide among economists regarding the optimal timing and scale of investment to mitigate climate damages. While some advocate for massive immediate investments, others suggest that waiting until societies are wealthier and technologies are more advanced could be more cost-effective.
Reference(s):
Climate impacts set to cut 2050 global GDP by nearly a fifth
cgtn.com
