A new study suggests that the economic impact of climate inaction could be worse than previously thought. Researchers from ETH Zurich found that if global temperatures were to increase by 3C, it could reduce the world’s gross domestic product by around 10%. This scenario would have a particularly devastating effect on less developed countries. On the other hand, if efforts are made to limit global warming to 1.5C by 2050, as outlined in the Paris Agreement, the economic impact could be reduced by about two-thirds.
The study takes into account the impacts of weather extremes and variability, such as temperature spikes and intense rainfall, which can have significant economic consequences. These findings underscore the importance of taking action to mitigate climate change and its effects on the global economy.
It is clear that addressing climate change is not only essential for environmental reasons but also for economic ones. The longer we wait to take meaningful action, the more severe the economic impacts are likely to be. By working together to reduce global greenhouse gas emissions and limit global warming, we can help protect the world’s economy and ensure a more sustainable future for all.