News

Global economy could drop by 18% over ecological damages, by 2050 (Report)

  • Comments   -   Tuesday, 12 June 2018 - 17:35

(Ecofin Agency) - By 2050, environmental damages could lead global economic output to decrease by 18%. Allianz Global Corporate & Specialty (AGCS) indicates in its latest report entitled “Measuring and Managing Environmental Exposure: A Business Sector Analysis of Natural Capital Risk’.

Quoting data from Trucost research group and the UN-backed Principles of Responsible Investment (PRI) network, the report shows that this percentage (18%) would represent a total of $28.6 trillion. According to AGCS, the slowdown could be linked to an increasing growth of the exposure to natural capital risks of several world economy’s key sectors (i.e. all natural resources used for goods production and ecological purposes). These include transport sector, which is a significant contributor to greenhouse gas emissions.

Moreover, the report points out that carbon emissions generated by transport sector have increased by 250% since 1970, and account for 23% of global emissions. Although the sector is less exposed to natural capital risks than others, such as oil and mining, AGCS indicates that it is more vulnerable.

The report indicates that annual climate change losses could shrink to 1% of global GDP if adequate measures are taken to reduce them. However, they could reach 5%, if governments are slow to respond to this growing phenomenon which affects economies both socially and environmentally.

Moutiou Adjibi Nourou

On October 18, 2018, Léon Juste Ibombo, Congo’s minister of posts and...
Read more |  19 October 2018
JSE - listed (Johannesburg Stock Exchange) IT company Altron and Huawei partnered to...
Read more |  19 October 2018
Bank of Kigali will issue new shares at CFA270 each, the bank...
Read more |  19 October 2018
Kenya plans to attract about 2.5 million tourist arrivals per year by...
Read more |  19 October 2018
Tunisia is being watched by the Eurobond market following its announcements that...
Read more |  19 October 2018
The African Development Bank’s efforts to channel critical investment funding to Africa’s...
Read more |  19 October 2018

Copyright Agence Ecofin © 2018. All Rights Reserved.