The economics of climate change-no action not an option

This report discusses under the current trajectory, global GDP could be 11–14% less by mid-century than in a world without climate change. The loss under Paris Agreement targets would be significantly less (around 4%). Economies in south and southeast Asia are the most vulnerable to climate change effects; advanced economies in the northern hemisphere least so. Climate change also poses transition risks: Asia may be most impacted.  More than what is being pledged today is needed to achieve the Paris agreement. International convergence on data, standards, metrics and disclosure of roadmaps towards “net zero” are key.

Its key takeaways are as follows:

• Global temperature rises will negatively impact GDP in all regions by mid-century.
• Achieving the Paris Agreement temperature target is the most-desirable outcome.
• Top- and bottom-five Climate Economics Index rankings wherein economies in south and southeast Asia are particularly  vulnerable to adverse effects of climate change, and advanced economies in the northern hemisphere least so.
• Transition risk wherein imposition of a global carbon tax of USD 100 per metric ton would impact the energy, materials and utilities sectors most.