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Study Warns of 40% GDP Loss Due to Climate Change

  • 02 Apr 2025

In March 2025, a study by Australian researchers revealed that a 4°C rise in global temperatures could slash world GDP by 40% by 2100, far exceeding previous estimates.

Key Points

  • Severe Economic Impact: The study, revises previous projections, which estimated only an 11% GDP decline.
  • Supply Chain Disruptions: Unlike past models, this research factors in global supply chain failures due to extreme weather events.
  • Call for Stronger Action: Findings support limiting global warming to 1.7°C, reinforcing the need for ambitious decarbonisation efforts under the Paris Agreement.
  • Past Models Underestimated Damage: Traditional economic models failed to capture climate-induced financial disruptions, leading to flawed policy decisions.
  • Future Research Needs: The study notes that climate adaptation measures, including human migration, require further investigation.