Central Bankers: Climate Chaos Causes 30% Loss in GDP Growth
- Gabriel Thoumi
- 14. Nov. 2024
- 1 Min. Lesezeit
The NGFS just published its updated long-term climate scenarios that map out how economies may be impacted by climate change. Including the latest climate data and record extreme weather, projectec physical risks from climate change on GDP has quadrupled by 2050 in some scenarios.
What It Matters
At 3 C warming results in 30% loss in GDP growth.
Investments must increase to at least $900 billion to $2.1 trillion per year — 1% of global GDP — to achieve net zero emissions by 2050, according to UNEP
Requires a carbon price of $300 per ton by 2035 to transition to net zero by 2050.
Are You Listening?
“The expected economic impact of unabated climate change has significantly increased,” the NGFS said. “Due to the implementation of the new damage function, the projected physical risk impact has quadrupled by 2050 in some scenarios.”
The Central Banks and Supervisors Network for Greening the Financial System (NGFS) is a group of 141 central banks and supervisors and 21 observers, who on a voluntary basis, exchange experiences, share best practices, contribute to the development of environment and climate risk management in the financial sector, and to mobilize mainstream finance to support the transition toward a sustainable economy. NGFS purpose is to define and promote best practices to be implemented within and outside of the Membership of the NGFS and to conduct or commission analytical work on green finance.
I read this post about how some economists think climate chaos and central bank policies can slow down GDP growth, and it explains the idea in simple terms by showing the numbers and risks without confusing words. It made me think of a time I felt overwhelmed and wanted someone to Do my online calculas class for me, but breaking the work into little steps and working on one piece at a time helped me finish it. Small steps really help.
I saw how the article explains that climate change could slow global growth a lot and might cut GDP by around 30 percent if warming reaches 3 °C by 2050, which really makes the economics side real for me. Back in a tough term when school got heavy, I remember I had to take my online class cheap just so I could keep my grades up without stressing too much. Thinking about this shows how serious long term impacts on our world and lives can be.