Climate change is not just a concern for the environment that we live in, but also poses a major threat to human life and economy of the world as revealed by new studies and reports. A recent study published has revealed that the world will lose 19 per cent of its income by 2050 because of extreme weather events caused by climate change. In fact, a report by UK-based NGO Christian Aid has claimed that climate change related weather events have cost the world at least $41 billion since COP 28.
Economic Impacts of Climate Change
According to a recent study conducted by researchers from the Potsdam Institute for Climate Impacts Research that is published in the journal Nature, the global economy is predicted to lose about 19 percent of its income as a result of climate change related events. India will be among the worst hit nations which is expected to suffer a loss of about 22 percent of its income by 2050 which would amount to around $38 trillion. This is true even if the efforts are made to significantly reduce carbon emissions starting immediately.
Scientist and one of the study’s authors, Maximilian Kotz, has stated that loss of income will affect a large amount of population residing across North America, Europe, South Asia and Africa. The losses will occur as a result of effects of climate change on agriculture productivity, economic productivity of labour, and loss of infrastructure caused due to extreme weather events. These losses are much higher than the cost of limiting global warming to two degrees.
These findings are based on the trends observed over the last four decades across 1600 regions. The study has claimed that significant economic losses will be observed over the next 25 years across the globe including the developed nations such as Germany, France and the United States of America, laying the blame on historical emissions caused for rapid and unsustainable development. The study has also clarified that if efforts are not made immediately to reduce the emissions, the losses could increase to 60 per cent by 2100.
International Response
The international community has been working towards reducing the effects of climate change by discussing solutions at COP conducted annually and working on agreements such as the new loss and damage fund set up during COP 28 organised in Dubai. However, there is still a major gap in action that needs to be filled with energy transition and elimination of usage of fossil fuels. Additionally support needs to be extended to vulnerable nations, that are at most risk of extreme weather related events.
The report by the UK-based NGO, Christian Aid has asked the developed countries to provide enhanced financial support to meet the New Collective Quantified Goal (NCQG) for climate finance that is to be in the agenda of discussion at the upcoming COP 29 in Baku, Azerbaijan.
Conclusion
Climate change is not only an academic discussion. It is not something that might affect someone sometime in future. It is here and it is causing loss of lives, resources and economy. It is beyond high time we take coordinated action, to prevent further damage rather than accrue resources to control the situation after the disaster.
