What are the economic implications and the costs of not acting on climate change?

Climate change could lead to a 20% increase on food prices by 2050 and the costs of heat-related mortality could amount to more than €40 billion per year.

Confronted with these scenarios, scientists, economists and policy-makers must come together to answer the challenge of recovery from COVID-19 and create the conditions for an inclusive and fair economic prosperity while moving towards climate neutrality. Certainly, EU-funded research has a role to play.

H2020 Climate project COACCH gave relevant insights and contributed to the discussion with the webinar: Towards a climate neutral economy - what role for economic policies?

The event took place in March, with the participation of Commissioner Paolo Gentiloni. It brought together a range of researchers, academics and experts from the European Commission and the International Monetary Fund.

The webinar helped understand the link between macro-economics and climate action and how the EU can contribute to design cost-effective economic policies to mitigate climate change. 

Find out more and check the presentations.

COACCH has also been featured in the factsheet of the EU Green Deal “What if we do not act?”.

Amongst its achievements there is the recent contribution to the new EU Strategy on Adaptation to Climate Change, released earlier this year.

The most recent study in the project's framework estimates that, if Europe doesn’t take action to tackle climate change, the impact on the economy will be close to €200 billion per year in a 4°C increase pathway, and more than €100 billion per year in a 2°C increase pathway.