Global warming could cost global economy $178 trillion by 2070: Deloitte report

“If left unchecked, climate change could cost the global economy $178 trillion over the next 50 years, or a 7.6% reduction in global gross domestic product (GDP) for the the year 2070 alone. If global warming reaches around 3°C by the end of the century, the death toll could be significant, disproportionately affecting the most vulnerable and leading to loss of productivity and employment, food shortages and water, a deterioration in health and well-being and the advent in an overall lower standard of living on a global scale,” reads the latest report from Deloitte Center for Sustainable Progress (DCSP), released at the annual meeting of the World Economic Forum.

Based on in-depth research and analysis of 15 geographies in Asia Pacific, Europe and the Americas, Deloitte’s Global Turning Point report shows that unless world leaders come together and define a systemic approach to achieve net zero carbon emissions, the results could prove to be catastrophic.

The Intergovernmental Panel on Climate Change (IPCC) published in 2021 clearly indicates “a code red for humanity”. He predicted that cases such as flooding in China and Europe, wildfires in the Mediterranean and the United States as well as extreme heat waves in the Pacific Northwest of North America, will take a serious form in the future if we do not take action in a timely manner, when we can. It also reveals a huge gap between actions and ambitions set by organizations and government entities.

In addition, the report also details four key milestones for global decarbonization:

1. The public and private sectors come together, collaborating to build effective and fundamental frameworks and policies to drive concrete change.

2. Business and government leaders are making significant investments, driving structural changes in the global economy that prioritize low-emissions industries and accelerate the transition to net zero.

3. The geographies of the world are approaching their respective “turning points” – when the benefits of a transition to net zero begin to outweigh the costs – and ultimately generate positive regional net worth and growth.

4. After the turn, society realizes a greener future, where interconnected low-carbon systems underpin a clean economy that grows at an ever-faster pace than its carbon-intensive alternative.

Teresa H. Sadler