Climate change is set to slash global income by 19 per cent. 

An international study published in Nature reveals that global income could plummet due to climate change, with Australia facing significant economic repercussions. 

The study combined local climate data with economic metrics from over 1,600 regions worldwide to project the potential impacts of unmitigated carbon emissions on economic productivity.

The analysis indicates a stark reduction in global economic output, attributing much of this to variations in local temperatures and precipitation patterns. 

The estimated 19 per cent economic decline shows the cost of delayed action against climate change, suggesting that the financial damage could exceed by six times the expenses required to meet the Paris Climate Agreement targets.

Countries with lower incomes and minimal historical emissions are predicted to suffer disproportionately, experiencing a 61 per cent greater income loss compared to wealthier nations. 

Professor Ilan Noy from Victoria University of Wellington says the study shows the cost-effectiveness of transitioning to sustainable energy sources. 

“The authors of this paper clearly show that the transition to sustainable energy sources is significantly less costly than the cost we are already ‘committed’ to bearing by our past greenhouse emissions,” said Dr Noy.

By quantifying the economic risks of climate inaction, the study provides a clear rationale for immediate and sustained climate mitigation efforts aimed at stabilising global temperatures.