Inaction over climate change could slash global GDP by 3% annually by 2030, BofA says – The National

Inaction over climate change could slash global GDP by 3% annually by 2030, BofA says – The National

The cost of inaction over climate change could lead to the loss of 3 per cent of gross domestic product every year by 2030, ballooning to $69 trillion by the end of this century, Bank of America has said in a report.

“Around 5 per cent [approximately $2.3tn] of global equity stock market value could be wiped out permanently by climate policy re-pricing, with a potentially extreme hit to corporate earnings for certain sectors,” the bank said.

The warning comes ahead of a meeting of global policymakers at Cop26 in Glasgow, Scotland. Under the Paris Accord, countries around the world are being urged to become climate neutral to contain rising emissions. The international agreement calls for countries to cap the warming of the planet at 1.5°C above pre-industrial levels, while at the same time reaching net-zero emissions by 2050.