Climate Change Could Cost Individuals $500,000 Over Lifetime, Study Finds

A recent research published in the journal Nature reveals that climate change could cost individuals up to $500,000 over their lifetime, with global incomes projected to decrease by almost 20% on average by 2050 due to severe climate impacts. The study's findings suggest that the economic damages from climate change are already locked in at around $38 trillion per year by 2049, and could reach twice that amount by 2100.

The researchers examined 1,600 global areas and found that the southeastern and southwestern United States, as well as southern Europe, will be hit harder economically than other regions. The poorest countries and those least responsible for greenhouse gas emissions are expected to suffer the biggest financial losses, with a 61% greater income loss compared to the richest countries.

Why this matters: The study highlights the urgent need for action to mitigate the devastating economic consequences of climate change, particularly for the most vulnerable populations. It emphasizes the importance of global cooperation and proactive measures to limit temperature rises and avoid the worst-case scenarios.

The study's authors note that the cost of damage from extreme weather events is six times more than what it would cost to limit warming to 2 degrees Celsius. They argue that real solutions to address climate change require a focus on limiting warming to this threshold, as the costs of inaction are much higher than the costs of proactive measures.

According to the study, cutting carbon emissions now can significantly reduce the financial impact in the second half of the century, with a 2°C warming scenario resulting in around a 20% global income loss, compared to a 60% loss in a worst-case emissions scenario. However, the economic damages over the next 25 years are largely locked in, regardless of how quickly emissions are reduced before then.

The World Bank has pledged to boost its share of total annual climate finance by 10 percent, from 35 to 45 percent, but experts suggest that governments will need to play a larger role in subsidizing and de-risking investments in renewable energy, particularly in poorer countries facing debt crises.

The study's lead author, Potsdam Institute for Climate Impact Research scientist Kalkidan Ashebir, described the findings as "devastating" and "shocking" in terms of the inequality dimension. The researchers stress the urgency of rapid action to achieve net-zero emissions globally and mitigate the worst economic impacts of climate change.

Key Takeaways

• Climate change could cost individuals up to $500,000 over their lifetime.
• Global incomes projected to decrease by 20% on average by 2050 due to climate impacts.
• Economic damages from climate change locked in at $38 trillion per year by 2049.
• Poorest countries expected to suffer 61% greater income loss than richest countries.
• Limiting warming to 2°C can significantly reduce financial impact in the second half of the century.