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Climate change to cause $38 trillion a year in damages by 2049, says PIK | Laura Millan

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Climate change will inflict losses to the global economy worth an annual $38 trillion by 2049, as extreme weather ravages agricultural yields, harms labor productivity and destroys infrastructure, according to researchers at the Potsdam Institute for Climate Impact Research (PIK).

MITZI JONELLE TAN, of the Philippines, center, participates in a Fridays for Future protest calling for money for climate action at the COP27 UN Climate Summit, November 11, 2022, in Sharm el-Sheikh, Egypt.

“Climate change will cause massive economic damages within the next 25 years in almost all countries,” Leonie Wenz, the scientist at PIK who led the study, said in a statement. “We have to cut down our emissions drastically and immediately—if not, economic losses will become even bigger in the second half of the century, amounting to up to 60 percent on global average by 2100.”

The researchers said cutting emissions and limiting global warming to 2°C by the end of the century would be the most cost effective way to reduce further climate damages. “Protecting our climate is much cheaper than not doing so, and that is without even considering non-economic impacts such as loss of life or biodiversity,” Wenz said. “We will need more adaptation efforts if we want to avoid at least some of them.

 

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