The Staggering Economics of Our Warming Planet

Apr 27, 2024
Anjal Nainabasti

Imagine waking up one day to find the cost of everything has doubled or tripled, the price to cool our blistering homes, put gas in our cars, and grow crops to put dinner on the table. Now imagine the world's economy shrinking not by percentage points but by nearly a quarter. This is the dire future predicted by climate economists if we fail to act on climate change.  

The numbers are staggering. The IPCC warns unchecked warming could slash global GDP per capita by over 20% by 2100. That's world economic output decimated, livelihoods ruined, nations crippled. Meanwhile, the bill is already coming due to extreme weather now made worse by climate change, to the tune of over $100 billion in damages a year and counting. 

The warming planet could displace over 140 million people in just three developing regions by 2050. This would trigger a migration crisis dwarfing anything in human history. Yet this massive human suffering and economic risk is entirely preventable if we move rapidly from fossil fuels to renewable energy. The Global Commission on Adaptation found that a $1.8 trillion investment in climate adaptation could generate over $7 trillion in net benefits. This is our clearest sign that climate action is not costly but profitable. A profitable response to the greatest threat facing humanity. One yields better health, cleaner air, higher productivity, and yes - economic growth.

In short, inaction risks puncturing the entire world order - our livelihoods, our food security, our habitats - like a slow leak sinking a ship. While action patches the leak, steering us swiftly toward a decarbonized global economy buzzing with innovation. An economy where green technologies drive job growth and resilient infrastructure protects communities. The economics couldn't be clearer - climate inaction is suicide, adaptation is opportunity. Policymakers must treat climate change like the economic emergency it is. Anything less sells short our entire economic future. We cannot afford to kick this can down the swollen, flooded road any longer. The time for climate action is now. Our window is closing fast. The stakes could not possibly be higher for getting this right.

 

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