According to a study published in Nature, big corporations, governments, and individuals will bear a financial burden due to climate change. As the United Nations warns of an increase of about 3 degrees of global warming in the next century, the study estimates there will be an approximately 19% decrease in global income over the next 26 years.
This financial strain will arise from various factors, such as property repairs from extreme weather events and negative impacts on agriculture, labour productivity, and cognitive ability from increased temperatures. As a result, housing, food, energy, transportation, and health costs are also expected to rise. The financial burden is also expected to be distributed unevenly, where poorer countries, for example, in South Asia and Africa, are anticipated to experience a greater income reduction than countries in North America and Europe.
Moreover, the study mentions that short-term financial pain is inevitable, but adopting prompt and effective strategies now could lessen the negative impacts of climate change in the long-run. Researchers from the study have also suggested that adaptation strategies, as opposed to mitigation strategies, could help save money longer term.