Climate change could cut global GDP in half by late 21st century

Without urgent action to curb emissions and restore ecosystems, the global economy could shrink by 50% between 2070 and 2090 due to climate-driven disasters, according to a report by actuaries and scientists.

Sandra Laville reports for The Guardian.

In short:

• A study by the Institute and Faculty of Actuaries warns climate impacts like extreme weather and ecosystem collapse could devastate the global economy.
• Current economic models underestimate risks by ignoring tipping points and systemic failures caused by global heating.
• The report calls for policymakers to adopt a "planetary solvency" approach to protect the Earth's systems essential for human survival.

Key quote:

“You can’t have an economy without a society, and a society needs somewhere to live.”

— Sandy Trust, lead author of the report

Why this matters:

Climate-related shocks could disrupt food, water and energy systems, threatening billions of lives and global stability. Ignoring these risks perpetuates inadequate policies, leaving humanity unprepared for worsening crises.