Recent climate change-related natural disasters and extreme weather conditions have taken a toll on economies worldwide, displaying the impacts of climate change.

The estimates of macroeconomic damages from climate change vary significantly, depending on the vulnerability of different economies and regions, the resilience of key socioeconomic systems like infrastructure, and climate action.

Previously, scientific evidence established that a 1°C rise in global temperature causes up to a three per cent GDP loss to the global economy. However, the latest evidence, according to the report by the National Bureau of Economic Research (NBER), claims that a 1°C increase will result in a peak loss of 12pc to global GDP.

This new evidence indicates that the welfare loss precipitated by a moderate increase in global warming is comparable to the damage caused by a major domestic war. This suggests that climate change is not merely a risk-inducing factor in economies; instead, it itself poses several direct and indirect risks, proving further the complexity and peculiarity of the modern economy.

The most common manifestation of climate change is temperature increase. This causes capital depreciation and a loss of labour productivity, resulting in a........

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