The climate crisis is generating colossal economic costs, but solutions exist to mitigate its effects and reap substantial benefits. Here is a three-part summary with figures and sources.
1. Current and future cost of the climate crisis (“business as usual” scenario)
• Damage related to natural disasters: In 2023, natural disasters, exacerbated by climate change, caused losses estimated at €228 billion.
• Overall cost of extreme events: Between 2000 and 2019, extreme weather events attributable to climate change cost an average of $140 billion per year, or approximately $2.86 trillion over the period.
• Impact on global GDP: A study by the National Bureau of Economic Research predicts that a 2°C rise in temperature by 2100 could lead to a 50% decline in global GDP, equivalent to the Great Depression of 1929.
• Cost of inaction: The Stern Report (2006) estimates that the cost of inaction on climate change could reach up to 20% of global GDP, compared to 1% for preventive measures.
2. Possible solutions, associated costs, and expected benefits
a) Renewable energy and energy efficiency
• Emissions reduction potential: According to the IPCC, options costing less than $100 per ton of CO₂ avoided, such as solar, wind, methane emissions reduction, and energy efficiency, could halve global emissions by 2030.
• Cost reductions: The last decade has seen sustained declines in the unit costs of solar energy (85%), wind energy (55%), and lithium-ion batteries (85%).
b) Nature-based solutions
• Effectiveness of natural solutions: The IPCC emphasizes that actions such as reforestation, agroecology, wetland protection, and urban greening are effective in reducing climate risks.
c) Necessary investments
• Financing the transition: The Climate Policy Initiative think tank estimates that the investments needed to finance the low-carbon transition amount to approximately $9 trillion per year.
d) Economic benefits
• Positive economic impact: The Global Commission on the Economy and Climate estimates that ambitious climate action could generate $26 trillion in additional economic benefits by 2030, while creating 65 million jobs.
3. Comparative summary: inaction vs. action
| Inaction (current scenario) | Ambitious climate action | |
| Estimated annual cost | Up to 20% of global GDP | Approximately 1% of global GDP |
| Impact on global GDP | Potential decline of 50% by 2100 | Sustained economic growth |
| Investments required | $9 trillion per year | |
| Economic benefits | $26 trillion by 2030 | |
| Job creation | 65 million additional jobs by 2030 |
Current economic data shows that inaction in the face of the climate crisis will result in exorbitant costs and major economic losses. On the other hand, investments in proven and effective solutions can not only mitigate the effects of climate change, but also stimulate economic growth and create jobs. It is therefore imperative to act quickly and in a coordinated manner to ensure a sustainable future.
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