“The climate crisis is already ravaging lives in the poorest countries, but the world’s most developed economies are no exception,” Oxfam GB Chief Executive Danny Sreeskandraja said in a statement.
According to Oxfam calculations, rich countries are at risk of losing $5,000 billion annually over the next three decades due to the devastating consequences of climate change. Climate change and its aftereffects will lead to negative consequences, namely hurricanes, floods, droughts, large-scale human migration and heavy material damage, resulting in business disruption and low productivity.
If current trends in climate change continue, G7 countries could see their GDP shrink by 8.5 percent per year over the next 30 years. By comparison, COVID-19, which caused widespread unemployment and dwindling spending, only caused these countries’ GDP to drop by an average of only 4.2%.
And unlike the pandemic, the economy will not recover from the damage caused by climate change. In contrast, researchers predict that the economic impact will worsen with each passing year.
According to the World Bank, another 132 million people are at risk of extreme poverty by 2030 due to climate change.
Oxfam encourages G7 countries to strengthen their climate action targets and further reduce their carbon emissions, especially since most countries are not in a position to make the necessary adjustments to keep global warming below 1.5 °C . Remember that this is the limit set in the Paris Agreement and according to experts, if it is exceeded, it will trigger catastrophic climate change.
According to Oxfam, there will be economic benefits from strengthening the climate goals. So while current projections show the UK economy to shrink 6.5% by 2050, the decline could be limited to 2.4% if the G7 countries shift gears to stay better. Paris Agreement.