Overview

• A new study from UNSW projects a 40% reduction in global GDP by 2100 if temperatures rise by 4°C, a sharp increase from earlier estimates of 11%.
• The research identifies cascading global supply chain disruptions caused by extreme weather events as a key driver of economic losses.
• Previous economic models underestimated climate risks by focusing only on local impacts, ignoring global interdependencies and simultaneous weather shocks.
• No country is immune to the economic effects of climate change, with even colder regions like Russia and Canada vulnerable due to global trade dependencies.
• The study supports limiting warming to 1.7°C, aligning with the Paris Agreement's most ambitious targets to mitigate catastrophic economic and social consequences.