The effects of climate change are much more severe than we previously thought

Mitigation of climate change can reduce not only economic, but also physical risks. Tipping points, i.e. changes in climate systems after which there is no way back, are getting closer. As global average temperatures rise, extreme weather events will increase and cause serious economic losses. According to current forecasts, if we do nothing, by 2100 the world’s temperature could rise by up to 3.5 degrees Celsius compared to the pre-industrial level, which could result in drastic economic damage – we learn from the analysis published at the G7, which Dóra Fazekas The managing director of the Budapest office of Cambridge Econometrics, Márton Simó, an analyst at Cambridge Econometrics, writes.

Analyzes show that the increase in temperature causes damages in a non-linear way: the higher the temperature, the greater the economic losses we face. Some countries, such as Brazil, India, and Saudi Arabia, may experience significant GDP declines, while others, such as Canada and Russia, may even enjoy short-term economic benefits. However, limiting warming to 1.5 degrees Celsius could significantly reduce these damages.

The analyzes make it clear: the sooner we act, the cheaper it will be to mitigate climate change. Inaction is the most expensive solution. Emissions reduction and adaptation can work together to create a more sustainable future.