Too Hot to Think Straight, Too Cold to Panic: Landing the Economic Case for Climate Action with Decision Makers

This report examines the economics of action and inaction on climate, energy and the environment, and finds that failing to limit global warming to below 2°C could reduce cumulative global GDP by 15% to 34% by 2100. Conversely, the analysis suggested that investing 1% to 2% of global GDP in mitigation and adaptation efforts would significantly reduce these economic damages. They conclude that the net cost of inaction—climate change impacts minus the cost of action—is estimated at 11% to 27% of cumulative GDP, underscoring the economic imperative for proactive climate and energy strategies.