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Climate change impacts could ruin economies without financial support: report

According to the report, by 2025, corporate and personal income taxes will need to rise by 0.35% to cover the roughly $5 billion annual increase in government spending on climate-related disasters. By the end of the century, the model projects that value to rise to $24 billion or $55 billion annually, with tax increases of 1.4% and 2.7% under low and high emissions scenarios, respectively.

“What happens with climate change is that a lot of spending goes on, and it doesn’t always create value. We’re spending money fixing it,” Sawyer said.

Ryan Ness, co-author of the report and director of adaptation research at the Institute, said the impact on current and future economies will continue to reduce incomes and economic prosperity.

“The gap between what we expected to enjoy in a stable climate and what we can enjoy in a changing climate will only grow larger over the rest of the century,” Ness said.

While no region is immune to climate change, the report found that northern and Alberta will be hit hardest in terms of economic losses, followed by Manitoba, Ontario, Prince Edward Island and British Columbia. The states will follow.

The authors make five recommendations in their report, including for governments to integrate climate impact and adaptation policies into their decision-making.

They also recommend that governments scale up adaptation measures to match the scale of climate-related disasters and “double down” on national and global emissions reduction efforts.

Finally, the authors say governments should invest in understanding and preparing for the economic risks of climate change that have not yet been modeled.

Climate change impacts could ruin economies without financial support: report

Source link Climate change impacts could ruin economies without financial support: report

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