New study calculates climate change's economic bite will hit about $38 trillion a year by 2049

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New study calculates climate change's economic bite will hit about $38 trillion a year by 2049
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A new study says climate change will reduce future global income by about 19% in the next 25 years compared to a fictional world that’s not warming, with the poorest areas and those least responsible for heat-trapping gases taking the biggest monetary hit.

Spring into these fabulous new Insider DealsFILE - People watch the sunset at a park on an unseasonably warm day, Feb. 25, 2024, in Kansas City, Mo. A new study says climate change will reduce future global income by about 19% in the next 25 years compared to a fictional world thats not warming.

For the past dozen years, scientists and others have been focusing on extreme weather such as heat waves, floods, droughts, storms as the having the biggest climate impact. But when it comes to financial hit the researchers found “the overall impacts are still mainly driven by average warming, overall temperature increases,” Kotz said. It harms crops and hinders labor production, he said.

The world's poorest countries will suffer 61% bigger income loss than the richest ones, the study calculated.This new study looked deeper than past research, examining 1,600 global areas that are smaller than countries, took several climate factors into account and examined how long climate economic shocks last, Kotz said.

That shows that the public shouldn't think it's a financial “doomsday” and nothing can be done, Kotz said.

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