Climate change to cost world economy US$ 38 trillion

The global annual damage caused by climate change is estimated to be 38 trillion dollars until the year 2050, a study by a German research institute has found.

According to scientists at the Potsdam Institute for Climate Impact Research (PIK) ‘the world economy is already committed to an income reduction of 19 percent until 2050, even if CO2 emissions were to be drastically cut immediately.

South Asia and Africa are listed as regions that will experience the strongest income reductions due to climate change. The damages will be primarily caused by impacts on agricultural yields, labor productivity or infrastructure, the study further elaborated.