The Economic Commitment of Climate Change

Even if CO₂ emissions were drastically reduced immediately, the global economy would still be heading towards a significant drop of 19% in GDP by 2050, according to a recent study published in Nature.  Scientists at the Potsdam Institute for Climate Impact Research (PIK) assessed future impacts of changing climatic conditions on economic growth and their persistence.  They estimate the damages due to climate change at six times – 600% – greater than the mitigation costs needed to limit global warming to to the target of two degrees, based on empirical data from more than 1,600 regions worldwide over the past 40 years.  Such forecasts of the macroeconomic damage caused by climate change are crucial to informing public and policy debates about adaptation, mitigation and climate justice.