Climate change could hit richer countries twice as bad as pandemic

By Carlie Porterfield

The seven richest countries in the world are in danger of losing almost 5 trillion. dollars per year over the next three decades due to the devastating effects of climate change, according to the British charity Oxfam, in double losses from the damage caused by the coronavirus pandemic.

The G7 countries can expect an average GDP contraction of 8,5% per year by 2050, if the current trends in climate change continue, according to research by the Swiss Re Institute analyzed by Oxfam.

The pandemic, which caused widespread unemployment, sharp spending cuts and huge economic stimulus packages, caused the GDP of these seven countries to fall by an average of 4,2%.

Oxfam notes that unlike the pandemic, the economy will not "recover" from the damage caused by climate change, with researchers estimating that its economic impact will increase every year.

Climate change could negatively affect the economy through rising storms, floods and droughts, which could lead to massive human migration, property damage, trade disruptions and reduced productivity, according to Swiss Re Institute.

The poorest countries are even worse off, according to Oxfam: India's economy could slide by 27% by 2050 and the Philippines' GDP could shrink by 35% within the same time frame.

"The climate crisis is already having a devastating effect on the lives of people in the poorest countries, but the world's most developed economies are not immune," said Danny Sriskandarajah, CEO of Oxfam.

132 million. That is the number of extra people around the world who may be in extreme poverty between now and 2030 due to climate change, according to the World Bank.

Oxfam calls on the G7 countries to strengthen their climate action targets and further reduce their carbon footprint. Such an action would have financial benefits, according to Oxfam.

While current forecasts show the UK economy shrinking by 6,5% by 2050, the country could cut losses by 2,4% if the G7 countries shift gears to better meet their targets. Paris Agreement.

The seven richest countries in the world will meet this week in Cornwall, England, at the first G7 summit with a physical presence since the start of the pandemic. While the US, Japan, Germany, Britain, France, Italy and Canada have all set carbon targets, most fall short of the necessary adjustments to keep global warming below 1,5 degrees Celsius. level noted in the Paris agreement and which experts say could cause catastrophic climate change, according to Oxfam.

A study released in March found that people would need the equivalent of coronavirus lockdown measures every two years to achieve the goals set out in the Paris Agreement. The United Kingdom will host the G7 talks on climate change this autumn in Glasgow.
 

With Capital.gr