Rising Global Temperatures: A Costly Economic Impact for Britain

The Office for Budget Responsibility (OBR) issued a stark warning about the economic repercussions of global warming, projecting that temperatures rising to nearly 3 degrees Celsius above pre-industrial levels could significantly harm the UK economy. Their report anticipates a drastic 74% GDP increase in government debt by the early 2070s due to combined climate damage and mitigation measures.

The UN report from October last year complements the OBR's findings, predicting that current climate policies could lead to global warming exceeding 3 degrees Celsius by century's end. Although the OBR has revised its estimate of the cost of transitioning to a net zero economy down to 21% of economic output, the projected economic impact from climate change has risen.

An almost 3-degree temperature increase scenario could lead to an 8% reduction in GDP by the early 2070s, a significant rise from previous estimates of 5%. Additionally, primary government borrowing is expected to rise by around 2% of GDP, up from the previous 1.3%, excluding debt interest payments.

(With inputs from agencies.)