Scientists have issued a dire warning regarding the economic toll of climate change, projecting $38 trillion annual cost to the global economy within the next 25 years.
Their research, published in the journal Nature and conducted by a team from Germany's Potsdam and Berlin, paints a grim picture of damages fueled by climate inaction.
Drawing from an extensive analysis of over 1,600 regions worldwide spanning four decades, the researchers constructed a model to forecast future economic losses attributable to human-induced climate change.
They emphasize that these losses, primarily stemming from temperature and rainfall variations, affect critical sectors like agriculture, labor, and infrastructure.
Alarmingly, the projected costs represent a baseline scenario, with damages likely to exceed the estimated range of $19 trillion to $59 trillion as climate-related disasters intensify.
Lead researcher Maximilian Kotz highlights that the global economy is already set for a substantial income reduction of 19% within the next 26 years, irrespective of current efforts to combat climate change.
The researchers point out the disproportionate impact on tropical countries, where temperature increases will exact a heavy toll, worsening existing inequities
Anders Levermann, another study author, emphasizes the unjust burden faced by nations least responsible for climate change yet lacking resources to mitigate its effects.
The findings state the urgent need for decisive action to mitigate climate change, with failure to adapt potentially resulting in catastrophic economic losses exceeding 60% by the end of the century.
However, significant barriers persist, including the formidable costs associated with transitioning to a sustainable economy and entrenched interests resistant to change, notably the fossil fuel industry.
Despite the daunting challenges, the researchers stress that the costs of inaction far outweigh those of proactive measures outlined in the Paris Climate Agreement.
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