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.
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.
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