French Ministry of Economy warns of 3.6% GDP loss due to climate inaction

The French Ministry of Economy has warned that climate inaction could result in a major economic cost, estimated at 3.6% of France's GDP by 2050. This assessment, presented by Economy Minister Roland Lescure, highlights the risks of failing to implement sufficient adaptation and greenhouse gas reduction measures.

According to a note from the Directorate General of the Treasury, climate change could also degrade the public deficit by 1.8% of GDP by 2050, partly due to decreased labor productivity. The warning follows a period of sluggish growth and extreme weather; the government recently noted that heatwaves and droughts could reduce growth by 0.1 percentage points due to lower agricultural production.

Mathieu Lefèvre, the Minister Delegate for Ecological Transition, emphasized that the costs of "inadaptation, waiting, and immobility" would be significantly higher than the costs of proactive adaptation.