Categories
The report reveals that the macroeconomic damages from climate change are significantly underestimated, with global temperature increases causing six times more harm than previously believed.
A 1°C rise in global temperature could reduce world GDP by 12%, driven by extreme climatic events such as heatwaves, droughts, and storms, which are more correlated with global rather than local temperature changes.
The economic effects, including reduced investment, capital, and productivity, disproportionately impact low-income and warmer regions but also affect high-income countries.
The findings highlight the need for robust decarbonization policies, with a Social Cost of Carbon estimated at $1,065 per ton, advocating for urgent action to mitigate catastrophic economic losses.
