Climate change threatens 40% global market shrink by 2100
New research suggests that the impact of climate change on the global economy is significantly greater than previously thought. Recent analyses indicate that the climate crisis could shrink the global market by as much as 40 percent.
The climate crisis is closely linked with the economic crisis. Climate change may have a much more profound impact on the global economy than earlier predicted. New studies that consider the global reach of extreme weather events show that earlier forecasts were too optimistic. Economic models often assumed that a country's economy is affected only by local weather conditions, overlooking the impact of phenomena in other parts of the world.
The climate disaster will change the global market
Considering the global effects of extreme weather events, the predicted decline in global GDP is much larger than previously estimated. If Earth's temperature increases by more than 3°C by the end of the century, economic damages could reach 40 percent. Until recently, researchers suggested that in the worst-case scenario, GDP could decline by 11 percent by the end of the century. Deteriorating economic conditions and the ongoing climate crisis will significantly affect people worldwide.
Climate change may disrupt production and supply chains, limiting the ability for countries to assist one another. International trade is crucial for global economic activity, and our studies reveal that globally warm years lead to lower overall growth.
Action is needed now
Reducing emissions involves short-term economic costs that must be balanced with the long-term benefits of avoiding hazardous climate change. The ideal level of global warming that balances these costs and benefits is 1.7°C, which corresponds with the most ambitious goal of the Paris Agreement.
Our research reveals that previous predictions regarding the impact of warming on the economy were underestimated. Emission levels pose a risk to our future and that of future generations. Climate warming is a complex issue affecting all Earth's inhabitants, but to avoid the worst-case scenario, systemic changes and cooperation among economies are necessary.
