In its latest scientific assessment report of the Intergovernmental Panel on Climate Change (IPCC, 6th assessment report), it shows that limiting warming to 1.5°C with no or limited overshoot would reduce growth in GDP by about a tenth of a percent (0.09-0.14%) annually or between 2.6-4.2% by 2050, Research Fellow at Imperial College London Alaa Al Khourdajie told Report.

Even with that, global GDP would continue to rise, he noted. “Also, these costs do not take into account the economic benefits from avoided climate change impacts. Costs will vary from country to country, and it is difficult to provide a precise assessment because it depends on what measures are adopted.”

“This assessment of costs does not consider the economic benefits associated with avoiding climate change impacts which can destroy lives, livelihoods, property and infrastructure,” he stressed.

Put simply, less warming means avoiding the most severe climate impacts and has wider benefits (e.g., health, food and water security), meaning the savings in the long term will outweigh the upfront costs, he added.