Climate change a threat to human life, says JP Morgan

THE human race could cease to exist without extensive worldwide action to tackle global warming, economists at JP Morgan have warned in a report on the “catastrophic” potential of climate change.

In a document sent to clients, they said that deaths, immigration and conflicts will soar as Earth heats up and water supplies dry up, while famines will increase and species will be wiped out.

All this will have a devastating impact on economic growth and the stock market, said David Mackie and Jessica Murray, the report’s authors. The impact of climate change has been hugely underestimated, they said, and added: “Something will have to change at some point if the human race is going to survive.”

The warning comes after Mark Carney, Governor of the Bank of England, said pension funds held by millions could be rendered worthless by climate change.

According to JP Morgan’s research, titled “Risky Business: the Climate and the Macroeconomy”, the impact of climate change will be broad and devastating.

The economists call on world leaders to introduce a global carbon tax, saying that no other measure is likely to be enough.

The note stands in stark contrast to earlier climate reports from the investment bank, which have been far more reserved in the language used.

Noting that previous estimates about the environment had been marked by a lack of clear information, the bank warned that it was increasingly clear human activity is driving up carbon dioxide emissions at a faster pace than ever before.

The economists said: “The response to climate change should be motivated not only by central estimates of outcomes but also by the likelihood of extreme events.

“We cannot rule out catastrophic outcomes where human life as we know it is threatened.”