Estimates by the World Bank suggest that cumulative economic costs of climate change could reach 7.6 percent of GDP by 2030 and 13.6 percent by
The increase in extreme heat is expected to lead to a big rise in energy demand for cooling systems as the world passes 1.5°C of global warming above pre-industrial levels in the coming years. This imminent increase in demand for energy for cooling in the countries that are set to face an increase in extreme heat is likely to have a significant impact on inflation, according to Fulvia Marotta, an honorary research associate on the macroeconomics of climate change at Oxford’s Smith School of Enterprise and Environment, and a senior research economist at De Nederlandsche Bank. However, Marotta noted that extreme heat would have many other economic implications beyond inflation and supply and demand shocks, such as a hit to mortality and labour productivity in countries facing the biggest rise in temperatures. The research on extreme heat, which includes an open-source dataset of global heating and cooling demand, will be invaluable for central banks as they work on building future scenarios and stress tests around climate change, Marotta said.
Key Themes for 2026 and Beyond: Navigating Climate Change, AI and Affordability in a Fragmented Global Economy General en en-us en us calvert-advisor https://www.calvert.com/im/json/imwebdata/data en-us financial-advisor,financial-professional,calvert-advisor,individual-investor Insights Template b0368b1e-9722-4554-b3d2-affd007844dd calvert prod /content/imwebev/calvert /content/imwebev/calvert/en-us/calvert-advisor/insights/articles/2026-research-themes Calvert Research and Management Team Sustainable Investing Equity,Fixed Income,Alternatives Article 2026-01-14T21:53:00Z 88. Ultimately, the less society invests upfront to mitigate further climate change, the more will be required both near and long-term to adapt economies and communities to climate impacts. *Key takeaway: Affordability persists as a systemic risk and an opportunity—favoring innovators in cost-efficient housing, consumer value chains, circular economy solutions and financial inclusion. Calvert’s research integrates these financially material considerations into our security selection and company engagement to help position investment portfolios for long-term performance in an increasingly complex, multipolar world. *Before investing in any Calvert or Morgan Stanley Investment Management Inc.-advised fund, prospective investors should consider carefully the investment objective(s), risks, and charges and expenses.
# Review Article Impact of climate change on global economy: A comprehensive review. Climate change has emerged as an important global issue, primarily driven by human activities, affecting ecosystems, societies, and economies worldwide. This article explores various aspects of climate change, economic consequences, and the evolving discourse on climate risk. The review highlights the complex relationship among physical risks, transition risks, and approaches to cope with climate change. This study also investigates climate risk assessment models like Integrated Assessment Models (IAMs) and how they help understand the economic effect of climate change. This review focuses on the critical importance of instruments like the Climate Action Tracker in evaluating national and global climate change responses, which serve as a framework for assessing policy effectiveness and progress toward emission targets. By integrating different viewpoints from economics, environmental science, and governance, this review underscores the value of coordinated global action to address the challenges posed by climate change.
Under SSP5-8.5, global concurrent GDP affected by soil moisture droughts (GCE; Fig. 5a) is projected to reach 37 trillion USD in the mid-century period (10–75 trillion USD; 5th–95th percentile), corresponding to roughly 6.5% of global GDP (-2 to 18%), with all near-term exposure driven by climatic effects. Under the SSP2-4.5 mid-century scenario, regional disparities in GDP affected by soil moisture drought intensify (RCE; Fig. 5b), with drought-prone regions reaching up to three times the global average in relative exposure and largely coinciding with areas projected to experience pronounced drying8 1513–1766. Building on the existing evidence that climate extremes already impose substantial economic burdens and that these are projected to increase with global warming, our study shifts the focus from realized economic damages to GDP exposure to climate extremes, with particular emphasis on spatially compounding events, where multiple regions experience extremes simultaneously.
EPIC research is helping to assess climate change impacts, quantify its costs, and identify policies to reduce emissions and adapt to a changing world. The U.S. Energy & Climate Roadmap aims to inform climate and energy policy through a compilation of evidence-based proposals from EPIC scholars. The U.S. Energy & Climate Roadmap aims to inform climate and energy policy through a compilation of evidence-based proposals from EPIC scholars. # Climate Change and the U.S. Economic Future. Southern, coastal states will experience substantial, detrimental effects from climate change, including higher temperatures and exposure to enhanced coastal damages from storms and sea level rise. Colder, more northerly parts of the United States will experience fewer damaging effects from climate change. ### Valuing the Global Mortality Consequences of Climate Change Accounting for Adaptation Costs and Benefits. EPIC research is helping to assess climate change impacts, quantify its costs, and identify policies to reduce emissions and adapt to a changing world.
Natural resources would be depleted to such an extent that economic growth would no longer be possible. Food production and industrial output
Editor of the series, Phyllis Papadavid, reflects on a year of global macroeconomic developments and the forces of fragility, fragmentation and resilience that are now defining the global economic order. Over the past year, these ODI Global briefings have examined the macroeconomic forces that have emerged, including geopolitical risk, financial fragility, structural economic change and evolving policy frameworks. Senior Research Fellow Linda Calabrese’s work on China’s 2026–2030 policy agenda explores how Beijing’s strategic direction will shape global trade, finance and the uptake of innovative technology in low‑ and middle‑income economies. Furthermore, contributions stemming from research collaborations with Jane Mariara and Jorge Davalos (Partnership for Economic Policy) and Chahir Zaki (University of Orléans) highlight global experiences, including those of Kenya and Egypt in managing global shocks – demonstrating that resilience is not only about macroeconomic buffers but also structural reforms and institutional capacity to deliver targeted support.