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Report: Global GDP Losses Increase by 12% for Every 1°C of Warming Due to Climate Change

“Climate Change Report Reveals Shocking Economic Impact – Are We Prepared?”

Climate Change Report Estimates Economic Impact of Global Warming

A recent report on the macroeconomic effects of climate change has shed light on the staggering damages that extreme weather events can have on the global economy. The report, titled “The Macroeconomic Impact of Climate Change: Global vs. Local Temperature,” was published by the National Bureau of Economic Research (NBER) and has estimated that these damages are as much as six times larger than previously thought.

According to the report, for every 1 degree Celsius increase in global temperature, there is a corresponding 12% decline in global gross domestic product (GDP). This means that as the planet continues to warm, the economic consequences will be severe and far-reaching.

The report also calculated the “Social Cost of Carbon” to be around $1,056 per ton of carbon dioxide emissions. This figure is significantly higher than previous estimates, such as the $51 per metric ton estimated by the Interagency Working Group and the $190 per metric ton estimated by the U.S. Environmental Protection Agency (EPA).

In 2023, global carbon emissions reached approximately 37.55 billion metric tons, according to Statista projections. This massive amount of carbon emissions is contributing to the warming of the planet and the subsequent economic impacts.

If the world continues on a business-as-usual warming trajectory, the report warns that it could lead to a welfare loss of about 31%. This means that by the end of the century, people could be 50% poorer than they would have been without the impacts of climate change.

The report’s co-author, Adrien Bilal, an economist at Harvard, emphasized the importance of reducing emissions to mitigate these economic losses. He stated that even if the world manages to limit warming to the 1.5 degree Celsius target outlined in the Paris Agreement, the global GDP could still decrease by about 15%.

Climate scientists from around the world have expressed concerns about the trajectory of global warming, with many predicting that temperatures could rise by at least 2.5 degrees Celsius by the end of the century. This level of warming would have significant economic consequences, even if it falls short of the worst-case scenarios.

Overall, the report highlights the urgent need for action to address climate change and reduce greenhouse gas emissions. The economic impacts of global warming are not just a future concern – they are already being felt around the world, as evidenced by the recent flooding in Porto Alegre, Brazil. It is clear that the time to act is now to prevent further damage to the economy and the planet.

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