Climate policy needed for 'highest expected risks'

Climate policies must account for faster-than-expected warming to “avoid the catastrophic impacts of not changing course”, say the experts behind a new climate risk tool.

A team of experts from the Institute and Faculty of Actuaries (IFoA) and University of Exeter warn that, on its current trajectory, the planet is ‘highly likely’ to experience temperature increases of 2°C by 2050, with a possible 25 per cent loss of global GDP and over one billion people needing humanitarian aid.

The team predicted a 50 per cent loss in GDP between 2070 and 2090 without immediate policy action in their recently published Planetary Solvency report.

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Now the team have launched a new climate risk tool that addresses the discrepancy between climate projections and policy outcomes by providing a comprehensive overview of current and projected risks (up to 2050) across four key domains: climate, nature, society, and the economy.

The Planetary Solvency Risk Dashboard makes it possible to visualise and assess the risks of continuing our current course to exceed planetary boundaries – from the impacts of global food and water shortages on populations to the climate tipping points that, once triggered, could limit our ability to prevent the worst outcomes.

This supports the ‘situational awareness’ of decision-makers in government and financial markets, who face increased instability from escalating climate risks and fast-changing global contexts.