How much will climate change drag down the economy?

illuminem summarizes for you the essential news of the day. Read the full piece on Yale Climate Connections or enjoy below:

🗞️ Driving the news: Economists are fiercely debating the economic impact of climate change
• While some predict one-time costs from extreme weather, others foresee a persistent economic drag
• Most agree that damages will be significant, with climate economists estimating severe long-term impacts

🔭 The context: Hurricane Otis's devastation of Acapulco illustrates the potential economic harm of climate change
• The storm destroyed much of the city's infrastructure, highlighting how extreme weather can cripple economies
• The broader academic debate focuses on whether such events cause temporary setbacks or sustained economic slowdowns

🌍 Why it matters for the planet: Climate change is projected to cause tens to hundreds of trillions of dollars in lost economic growth by the end of the century
• The costs of inaction far outweigh the expenses of reducing carbon emissions, making climate solutions economically sensible
• Persistent economic damages also threaten to exacerbate inequalities, particularly affecting poorer, hotter regions

⏭️ What's next: The global economy faces significant risks if climate action is insufficient
• Meeting the Paris Agreement targets could stabilize economic impacts by mid-century
• However, without ambitious climate policies, economies worldwide may struggle with enduring damages

💬 One quote: "Climate damages are always going to be underestimated, some things we just can’t quantify," stated Gernot Wagner, Columbia climate economist

📈 One stat: An April 2024 study estimates that climate damage costs by 2050 will be six times larger than the cost of reducing carbon pollution in line with the Paris climate agreement

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