Climate change threatens the global economy - new study alarms

Climate change threatens the global economy - new study alarms

A new study by the Potsdam Institute for Climate Impact Research warns of global economic losses due to climate change. The researchers predict income losses of a fifth by the middle of the century, even if climate-damaging gases are drastically reduced. Without such measures, the economic damage could be many times higher than the costs of climate protection measures to limit global warming to a maximum of two degrees.

The damage will vary by region, with the poorest countries and those that have contributed the least to global warming being hit hardest. Even in North America and Europe, income losses of eleven percent are expected, although a further increase in per capita income is expected. However, current climate protection plans are not sufficient to achieve this goal.

Workers will also be affected, with South Asia and Africa hardest hit. The economic losses result from various impacts of climate change, including impacts on agriculture, labor productivity and infrastructure. The additional damage caused by natural disasters could further increase the overall level of losses.

The researchers found that the expected damage was due to greenhouse gases that had already been emitted. To mitigate these, adaptation measures are required and a drastic and immediate reduction in CO2 emissions is essential. Otherwise, economic losses could reach up to 60 percent worldwide by the end of the century.

The Potsdam team's current findings are similar to economist Nicholas Stern's forecasts from 2006. At the time, Stern warned of a decline in the international economy of around 20 percent due to climate change.