Climate crisis to shrink G7 economies
London, June 7: The economies of rich countries will shrink by twice as much as they did in the Covid-19 crisis if they fail to tackle rising greenhouse gas emissions, according to research.
The G7 countries — the world’s biggest industrialised economies — will lose 8.5 per cent of GDP a year, or nearly $5tn wiped off their economies, within 30 years if temperatures rise by 2.6C, as they are likely to on the basis of government pledges and policies around the world, according to research from Oxfam and the Swiss Re Institute.
The economies of nations contracted
G7 by
G7 countries will lose nearly $5tn within 30 yrs if temp rises about 4.2% on average in the Coronavirus pandemic, and the economic losses from the climate crisis by 2050 would be roughly on the scale of suffering a similar crisis twice every year, according to the research. The UK’s economy would lose 6.5 per cent a year by 2050 on current policies and projections, compared with 2.4 per cent if the goals of the Paris climate agreement are met.
Other nations will be hit much worse, including India, whose economy will shrink by a quarter owing to a 2.6C temperature increase, while Australia will suffer a loss of 12.5% of output, and South Korea will lose nearly a tenth of potential.
The leaders of the G7 countries — the UK, the US, Japan, Canada, France, Germany, Italy — and the EU will meet in Cornwall on Friday to discuss the global economy, Covid-19 vaccines, taxes
its
economic on business, and crisis.
The modelling by the insurance firm Swiss Re took account of the forecast direct impacts of climate breakdown, including extreme weather such as droughts and floods, as well as the effects on agricultural productivity, health and heat stress.
Jerome Haegeli, group chief economist at Swiss Re, said: “Climate change is the long-term number one risk to the global economy, and staying where we are is not an option – we need more progress by the G7. That means not just obligations on cutting CO2 but helping developing countries
the
climate too,
He said vaccines for
Covid-19 were also a key way to help developing countries, as their economies were hit hard by the pandemic and would need help to recover on a green path, rather than through boosting fossil fuels.
The insurer found that policies and pledges by governments to reduce greenhouse gas emissions were still inadequate to meet the goals of the Paris agreement. As well as hosting the G7 summit, the UK will host vital UN climate talks, called
Cop26, this November in Glasgow.
that’s
superimportant.”
OTHER NATIONS will be hit much worse, including India, whose economy will shrink by a quarter owing to a 2.6C temperature increase, while Australia will suffer a loss of 12.5% of output, and South Korea will lose nearly a tenth of its economic potential.