Study Reveals 4°C Rise in Global Temperature Could Slash GDP by 40%

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A recent study by Australian researchers reveals that a 4-degree Celsius increase in global temperatures could reduce global GDP by approximately 40% by the year 2100. This marks a significant revision from earlier estimates of about 11%. The findings, published by the University of New South Wales Institute for Climate Risk and Response in the journal Environmental Research, highlight flaws in prevailing economic models used in climate policy decisions.

Lead researcher Dr. Timothy Neal explained that traditional models often overlook the vulnerabilities in global supply chains that can exacerbate economic impacts during extreme weather events. "In a hotter future, we can expect cascading supply chain disruptions triggered by extreme weather events worldwide," he stated. The updated projections advocate for limiting global warming to 1.7 degrees Celsius, aligning with more ambitious decarbonization goals outlined in the Paris Agreement.

Dr. Neal emphasized that prior economic models underestimated climate change's adverse effects on economies, which has had serious implications for climate policies. The study serves as a crucial reminder that all nations face risks from climate change, regardless of geographic advantages.

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