This summer has seen unprecedented levels of extreme weather on a global scale. Heatwaves have shattered temperature records, rendering some regions uninhabitable and endangering vulnerable populations. Floods have inundated major cities and agricultural lands, displacing millions and causing massive property damage. Rampant, destructive wildfires have consumed vast expanses of forests and threatened biodiversity. Rising sea levels are posing increasingly significant threat to coastal communities, and extreme weather events have intensified, leading to widespread devastation. These occurrences are stark reminders of how urgently we need to address the pressing issue of climate change. The effects of such events have taken a severe toll and will continue to impact health, business, and human lives. In other words, there is no escaping the impending crisis, should it be allowed to continue.

What will these increasingly dangerous weather patterns mean for the global economy? A study conducted last October by Dartmouth University found that since the 1990s, heatwaves have cost the world economy $16 trillion U.S.D. The world’s poorest countries, which have contributed the least to the climate crisis, have suffered a 6.7% loss in G.D.P. per capita, while the richest have only lost 1.5%. The consultancy firm Deloitte has also projected a further loss of $178 trillion over the next 50 years if the climate crisis continues to go unchecked. There are several factors ascertaining this loss, with major costs to the agriculture sector, the healthcare sector, and major amounts of funds being diverted from governments to mitigate the adverse effects of extreme weather conditions.

Of course, exact figures projecting the cost of the crisis can be problematic. As microeconomist Dr. Matthew E. Khan explains, while there are many “knowns” about the future of the crisis, there exist still even more “unknowns.” Firstly, economists must be incredibly informed on current technologies to predict where technology will go in the next 50 years, and the effects those new technologies may have going forward. Secondly, it is incredibly difficult for an economist to predict when recessions will occur over a 50-year period. The third factor that makes it difficult to project the climate crisis’s definitive costs is that the crisis itself has already been shown to be hitting the world faster than scientists have predicted. Therefore, the figures mentioned earlier should be taken as an estimate, with the actual figure itself being much lower – or higher – than predicted.

To tackle this challenge, global co-operation is essential. Policy must stop relying on private corporations to resolve climate change, as while these corporations seemingly drive economic growth, continuing on their current paths will ultimately cost the global economy trillions upon trillions of U.S. dollars. Nations must come together to establish comprehensive policies aimed at reducing greenhouse gas emissions, transitioning to renewable energy sources, and promoting sustainable practices across industries. A robust global agreement, with binding commitments from all nations, can accelerate the shift towards a low-carbon economy.

Our nations must find it within themselves to act together in order to prevent the devastating effects of the climate crisis. Investing in clean technologies will be crucial to achieve significant progress; governments should incentivize innovation in renewable energy, energy efficiency, and carbon capture technologies. By supporting green industries and creating green jobs, we can stimulate economic growth while mitigating the impacts of climate change. Furthermore, financial mechanisms must be established to assist developing countries in adopting sustainable practices and adapting to climate impacts. Global funds can aid in building resilient infrastructure and supporting vulnerable communities, fostering a sense of shared responsibility in the fight against climate change. Only by acting collectively can we safeguard our planet and ensure a better quality of life for current and future generations.