India's economy likely to shrink by a quarter due to rising heat
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London: The developing countries like India are expected to endure the biggest GDP loss whose economy is likely to be contracted by a quarter due to the anticipated increase of temperature by 2.6C by 2050, a newly released report suggested.
The Oxfam and the Swiss Re Institute report warned the rich countries of a GDP loss to the tune of nearly $5 trillion or 8.5% from their economies in 30 years if they have not arrested the rising greenhouse gas emissions.
The loss would be twice for the G-7 countries, the wealthiest in the world, of what their economies endured during the COVID pandemic even if they adhere to the Paris Climate Agreement to bring down the greenhouse gas emissions. The report emphasised the importance of taking measures to prevent the global temperature from rising by 2.6C.
As per the report, the anticipated economic losses by 2050 would be like suffering a pandemic like crisis twice every year. The G-7 countries suffered a loss of about 4.2% in the coronavirus pandemic. The current policies and projections on climate change could do nothing to thwart global warming, the report underlined.
The leaders of the G7 countries – the UK, the US, Japan, Canada, France, Germany, Italy – and the EU will meet in Cornwall on Friday to discuss the global economy, Covid-19 vaccines, taxes on business, and the climate crisis.
According to a model drawn by insurance firm Swiss Re, climate change-induced extreme weather such as droughts and floods will also have an impact on agricultural productivity, health and heat stress.
The G-7 countries have also been alerted to the need for extending the assistance to the developing and poor countries in terms of reducing productions that increase the CO2 level in the atmosphere and investing in fossil fuels.
The insurer found that policies and pledges by governments to reduce greenhouse gas emissions were still inadequate to meet the goals of the Paris agreement. As well as hosting the G7 summit, the UK will host vital UN climate talks, called Cop26, this November in Glasgow.