Annual Costs From Climate Change Set To Total €35 Trillion

By: Trademagazin editor Date: 2024. 04. 24. 10:09

A study by the Potsdam Institute for Climate Impact Research (PIK) has estimated that the global economy faces approximately $38 trillion (€35.61 trillion) in damages each year due to the effects of climate change, equating to a significant annual income reduction of 19%.

Even if CO2 emissions were drastically reduced starting today, these economic costs are projected to persist until at least 2050, the study, published in the Nature journal, found.

It also noted that countries least responsible for climate change will experience income losses that are 60% greater than those of higher-income countries and 40% greater than those of higher-emission countries.

The study suggests that by 2050, global annual damages attributable to climate change could range from $19 trillion (€17.8 trillion) to $59 trillion (€55.3 trillion). This variation in estimated damages is influenced by factors such as the effectiveness of mitigation efforts and shifts in rainfall patterns and temperature variability.

To compile its report, PIK utilised empirical data gathered from over 1,600 regions worldwide spanning the past four decades. This data was analysed to assess the potential future impacts of changing climatic conditions on economic growth.

ESM