A stark warning has been issued about the economic and humanitarian costs of inaction on the climate crisis. According to the “Planetary Solvency – Finding Our Balance with Nature” report, global GDP could shrink by 50% between 2070 and 2090 if decisive measures are not taken. Populations are already grappling with food system shocks, water insecurity, heat stress, and infectious diseases. Without intervention, the likelihood of mass mortality, displacement, economic collapse, and conflict increases dramatically.
The report, the fourth in a series by the Institute and Faculty of Actuaries (IFoA) in collaboration with climate scientists, offers a framework for global risk management. It emphasizes that ineffective risk messaging has hampered policy decisions and delayed critical action, pushing the planet closer to its limits.
To address these challenges, the report introduces a “Planetary Solvency Risk Dashboard.” This tool is designed to provide actionable, transparent risk information to policymakers, helping them guide human activities within the planet’s finite resources. By offering clear insights into the interconnected risks posed by climate change, the dashboard aims to drive effective and timely decisions for sustainable development.
The IFoA stresses that without immediate and coordinated global efforts, the climate crisis could cause irreversible harm to ecosystems and economies. “Planetary solvency,” the concept at the heart of the report, highlights the need for humanity to strike a balance with nature, ensuring future prosperity and stability.
This comprehensive approach to risk management offers hope, but time is running out to implement the necessary changes to prevent catastrophic outcomes for both people and the planet.