"The economies of rich countries will shrink by twice as much as they did in
the Covid-19 crisis if they fail to tackle rising greenhouse gas emissions,
according to research.
The G7 countries – the world’s biggest industrialised economies – will lose
8.5% of GDP a year, or nearly $5tn wiped off their economies, within 30 years
if temperatures rise by 2.6C, as they are likely to on the basis of government
pledges and policies around the world, according to research from Oxfam and the
Swiss Re Institute.
The economies of G7 nations contracted by about 4.2% on average in the
coronavirus pandemic, and the economic losses from the climate crisis by 2050
would be roughly on the scale of suffering a similar crisis twice every year,
according to the research. The UK’s economy would lose 6.5% a year by 2050 on
current policies and projections, compared with 2.4% if the goals of the Paris
climate agreement are met.
Other nations will be hit much worse, including India, whose economy will
shrink by a quarter owing to a 2.6C temperature increase, while Australia will
suffer a loss of 12.5% of output, and South Korea will lose nearly a tenth of
its economic potential.
The leaders of the G7 countries – the UK, the US, Japan, Canada, France,
Germany, Italy – and the EU will meet in Cornwall on Friday to discuss the
global economy, Covid-19 vaccines, taxes on business, and the climate crisis."
Via Robert Sanscartier, Paul Ferguson and Kevin O'Brien.
*** Xanni ***
Chief Scientist, Xanadu
Partner, Glass Wings
Manager, Serious Cybernetics