29 Jun Climate Change Could Hamper Global Economy
Climate change could threaten roughly $25 trillion in global economic assets, according to a study conducted by Simon Dietz and a research team with the London School of Economics and Political Science. Dietz and his team argue that without critical regulations that could potentially limit climate change-inducing carbon dioxide emissions, the global economy could suffer as the climate shifts, leading to massive asset losses.
The study, published in the Nature Climate Change journal, wanted to see if climate change could potentially damage global economic growth and the value of financial assets across the world. As Forbes noted, the study considered the negative consequences of climate change, examining both the short-term risks (like powerful storms that could destroy assets) and long-term risks (such as rising temperatures or other weather-related effects that could reduce overall productivity). Potential impacts on assets varied, of course: With minimal climate change, only $2.5 trillion would be at risk; however, regarding a worst-case scenario, $25 trillion in assets could be in jeopardy. In the study, Dietz makes the case that enacting regulations that limit global warming to no more than 2 degrees Celsius annually would translate into a .2 percent increase in global financial assets. “Limiting warming to no more than 2 °C makes financial sense to risk-neutral investors—and even more so to the risk averse,” the study points out.
Combating climate change is about more than simply protecting the environment—it’s also about protecting our natural resources, and ensuring that our global economy continues to function efficiently and effectively. Reducing carbon emissions begins with sustainability, and one of the most effective sustainable strategies for businesses is the concept of zero-waste generation.
To learn more about this concept, read this post about how Good360 helps companies dispose of excess goods and products in a sustainable fashion.