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Trillions of dollars in damages each year due to climate change

Even if CO2 emissions were to be drastically cut down starting today, the world economy is already committed to an income reduction of 19% by 2050 due to climate change, a new study published in “Nature” finds. These damages are six times larger than the mitigation costs needed to limit global warming to two degrees. Based on empirical data from more than 1,600 regions worldwide over the past 40 years, scientists at the Potsdam Institute for Climate Impact Research (PIK) assessed future impacts of changing climatic conditions on economic growth and their persistence. Overall, global annual damages are estimated to be at 38 trillion dollars, with a likely range of 19–59 trillion dollars in 2050. These damages mainly result from rising temperatures but also from changes in rainfall and temperature variability. Accounting for other weather extremes such as storms or wildfires could further raise them. “Our analysis shows that climate change will cause massive economic damages within the next 25 years in almost all countries around the world, also in highly developed ones such as Germany, France and the United States,” says PIK. We have to cut down our emissions drastically and immediately – if not, economic losses will become even bigger in the second half of the century, amounting to up to 60% on a global average by 2100. This clearly shows that protecting our climate is much cheaper than not doing so, and that is without even considering non-economic impacts such as loss of life or biodiversity.”

Source: The Potsdam Institute for Climate Impact Research press release 17 April 2024, https://www.pik-potsdam.de/en/news/latest-news/38-trillion-dollars-in-da...
Kotz, M., Levermann, A. & Wenz, L. The economic commitment of climate change. Nature 628, 551–557 (2024). https://doi.org/10.1038/s41586-024-07219-0

Climate Change

In this issue

A major step toward cleaner air in the EU

By tightening limits on harmful pollutants like PM2.5 and NO2 the revised Air Qulaity Directive will significantly improve public health and align closer with WHO guidelines.

Editorial: Fighting for the right to clean air

“The dose makes the poison” is a basic principle in toxicology. Even drinking water can be lethal if consumed in excessive amounts. For air pollution, the levels considered harmful are often relatively small, measured in micrograms per cubic meter of air. However, exposure is constant as we continuously breathe, and these small ammounts accumulate, leading to diseases and ultimately deaths.

How many arguments will it take?

There are many reasons to reduce car use in cities, and yet traffic reduction policies seem to remain controversial and unpopular. Systems thinking and understanding how to communicate the multiple and complex set of impacts will help push forward urban transformations that reduce car dependency.

Global resilience by empowering communties: the “Early Warnings for All” intiative at COP28

The urgency of addressing climate change and its impacts has never been more apparent, and the “Early Warnings for All” initiative stands at the forefront of global efforts to enhance resilience against meteorological risks. At COP28, the initiative received significant attention.

Opportunity to address gaps in the NEC directive

The EU NEC Directive sets national targets to reduce emissions of five key pollutants. Article 13 of the directive mandates a review before the end of 2025.

European Parliament approves watered-down Euro 7 rules

The European Parliament approved a deal on the revised Euro 7 emissions rules for cars, trucks, and buses in March. However, the decision remains controversial, with stakeholders divided on whether it goes too far or not far enough in combating emissions.

Hit or miss: Ammonia as a climate-friendly fuel

In the quest for a clean shipping fuel, ammonia is emerging as an unexpected hero. Made from air and water using renewable electricity, it promises near-zero emissions. According to the IMO and IEA, ammonia's future potential is significant—but there are some caveats.

A walk in the woods: summarising the state of Swedish forests

Almost 70 percent of Sweden's land area is covered by forests. In this article, the writer explores the significance of these forests for people, communities, and biodiversity as well as highlighting how they are utilised and managed today.

Bulgarian forests – biodiversity under threat

Forests cover more than a third of Bulgaria’s territory. However, they face numerous challenges, such as poor management, illegal logging and the effects of climate change.

Carbon measurements in old-growth forests

The environmental movement often hails old-growth forests as saviours of the climate, whereas the forestry industry argues that it is young, growing forests that soak up carbon dioxide. We followed along as the exhalations of an old forest were measured – using steel cages and gas masks.

Denmark introduces tax on farm emissions

The Danish government is proposing a climate tax on livestock emissions. Farmers will pay 16 euros per ton of CO2e in 2030, with the rate increasing to 40 euros by 2035.

Boosting climate policy with aquatic research

Ocean acidification and environmental change in lakes were the most frequently cited topics by the IPCC and IPBES, according to a recent impact assessment of AQUACOSM-plus, an EU-funded project focused on experimental research in aquatic environments.

EU needs to align power grids with climate goals

Scenario calls for a 131% increase in European power grid transmission capacity by 2035 to accomodate full phase-out of coal and fossil gas.

Plan to fast-track renewable energy deployment in the EU

To boost renewable energy adoption, the European Commission has introduced new guidelines for Renewables Acceleration Areas (RAAs). However, a recent report shows many countries are unprepared for RAA designation and sensitivity mapping.

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Trillions of dollars in damages each year due to climate change

In this issue

A major step toward cleaner air in the EU

Editorial: Fighting for the right to clean air

How many arguments will it take?

Global resilience by empowering communties: the “Early Warnings for All” intiative at COP28

Opportunity to address gaps in the NEC directive

European Parliament approves watered-down Euro 7 rules

Hit or miss: Ammonia as a climate-friendly fuel

A walk in the woods: summarising the state of Swedish forests

Bulgarian forests – biodiversity under threat

Carbon measurements in old-growth forests

Denmark introduces tax on farm emissions

Boosting climate policy with aquatic research

EU needs to align power grids with climate goals

Plan to fast-track renewable energy deployment in the EU

Publications

Food for Thought

Northern forests, climate change and the UNFCCC

EU climate targets aligned with the Paris agreement’s 1.5°C objective

Baltic Sea Offshore Wind Collaborative-Learning project

Air pollution in Europe and children’s health

Climate Change: A Himalayan Odessey

No further discussion needed. The agreed global goal is to limit temperature rise to 1.5°C

Fossil-free electricity 2021

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