German Institute for Economic Research (DIW) reports if GHG not halved, economic damages of US$20 trillion by 2010, or 6-8% of global economic output. The later climate protection starts, the more expensive it will become

German Institute for Economic Research (DIW) reported that if nothing is done to halve GHG, economic damages could amount to US$20 trillion by 2100, or 6-8% of global economic output. The study goes on to say that if immediate action were to be taken in climate change policies to limit temperature increase to 2 degrees by spending $3 trillion per year on climate protection, it could halve these damages, avoiding around $12 trillion incurred costs. If protection does not begin until 2025, it would be impossible to limit warming to 2 degrees by 2100, therefore the later climate protection starts, the more expensive it will become.

Source: Climate Change – the Costs of Inaction (PDF) – Frank Ackerman and Elizabeth Stanton – Global Development and Environment Institute – Tufts University, MA, USA

Date: 11 October 2006