Climate change may wipe out US$18 trillion by 2050, forum warns

The Mae Fah Luang Foundation’s Sustainability Forum 2025 sounded a stark warning on Monday, projecting that if global temperatures rise by 3.2°C by 2050, the world economy could lose as much as US$18 trillion – six times the damage inflicted by the Covid-19 pandemic.

Karin Boonlertvanich, executive vice-president of Kasikornbank, cited the Intergovernmental Panel on Climate Change (IPCC) in stressing that the economic toll could amount to 18% of global GDP, compared with the US$8 trillion – or 3% of GDP – lost during the pandemic.

For Thailand, the impact could be severe. “We estimate losses equivalent to 44% of annual GDP or 45% of exports. If businesses fail to adapt, banks like ours will face rising non-performing loans. This raises the question: how can we compete in a rapidly changing world?” Karin said.

He added that global climate finance is accelerating, from US$1.9 trillion in 2023 to a projected US$4.4–6.3 trillion in 2030, and US$7.1–9.2 trillion in 2031–2050. The focus will gradually shift from energy and transport towards supporting carbon reduction in manufacturing.