Climate change poses significant risks to global economic stability

Extreme weather events driven by climate change are increasingly impacting global economic stability, affecting productivity, tax revenues, and consumer prices. According to data from Verisk, climate-related disasters are expected to cost an average of $450 billion annually, with more than half of these losses remaining uninsured.

Economists warn that the long-term consequences of rising temperatures could be catastrophic for global wealth. Research by Harvard professor Adrien Bilal suggests that a 1°C increase in global temperatures could lead to a long-term drop in global GDP of between 20% and 50%.

In their work, “Économie et climat, le faux dilemme,” Raphaël Boroumand and Myriam Maestroni argue against the perceived conflict between economic growth and climate action. They propose a third way focused on “decarbonized growth,” which seeks to decouple economic expansion from CO2 emissions rather than choosing between traditional productivism or total degrowth.