The world economy could be 10 per cent smaller if the 2050 net-zero emissions and Paris Agreement targets on climate change are not met, according to research from Swiss Re.
The insurer predicts that under the current likely trajectory of temperature rise, global GDP could be 11-14 per cent less by mid-century than in a world without climate change; if no action is taken at all then global GDP could be 18 per cent less, it says.
Swiss Re stress tested how unmitigated climate change could impact 48 of the world’s biggest economies and how well positioned they are to adapt.
It singles out China as being at risk of losing nearly 24 per cnet of its GDP in a severe scenario, while the world’s biggest economy, the US, stands to lose close to 10 per cent, and Europe almost 11 per cent.
It also says that under current projections, growth rates in today’s advanced markets would start to outpace those of emerging markets in the latter half of the century
Countries in southeast Asia, Latin America, the Middle East and Africa score worst in terms of vulnerability to physical risks and low levels of adaptation capacity.
