Researchers working for the Potsdam Institute for Climate Impact Research in Germany claim that climate change will cost the world $39 trillion a year by 2049 to mitigate, reducing the global income by 19 percent.
By 2100, the financial costs could double compared to what was previously estimated, according to the study which was published in the journal Nature.
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“Our analysis shows that climate change will cause massive economic damages within the next 25 years in almost all countries around the world, also in highly-developed ones such as Germany and the US, with a projected median income reduction of 11 percent each and France with 13 percent,” wrote economist and climate scientist Leonie Wenz, the study’s co-author.
The Potsdam Institute collects analysts from around the world to study the effects of climate change, according to its website. It does this explicitly to build a knowledge base for “sustainable development” policies, and directly advises politicians on environmental policies.
The study factors in predictions about the growth of global GDP, explaining that incomes will still grow over time but at a slower clip than if global temperatures were not going to rise, according to lead researcher Max Kotz.
“Those temperature increases drive the most damages in the future because they’re really the most unprecedented compared to what we’ve experienced historically,” said Kotz. The researchers believe the majority of the damages will be caused by the average temperatures increasing, rather than extreme weather events, as the temperatures will make it harder to work and grow crops.
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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