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.
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