A new report by climate scientists and financial experts cautions that the world has underestimated the pace of global warming, potentially leading to trillions in economic losses by 2050. Governments and businesses are urged to prepare for worst-case scenarios amid accelerating temperature rises. Recent data shows 2025 as the third-warmest year on record, pushing closer to breaching the 1.5°C Paris Agreement threshold sooner than anticipated.
The impacts of climate change are unfolding faster than expected, according to a report from climate scientists and financial experts, which describes a risk of "planetary insolvency" where warming severely hampers both the environment and economic growth. Decision-makers often rely on moderate projections, but the report insists on planning for extreme outcomes, as events like sudden precipitation shifts are arriving ahead of schedule.
David King, former UK government climate adviser and report contributor, emphasized urgency: "Governments need to agree on a planetary solvency plan quickly." He noted an accelerated temperature rise, adding, "We’re not sure if that will continue into the future but we can probably assume it’s not going to relax backwards."
Sandy Trust from the UK’s Institute and Faculty of Actuaries, another author, criticized current economic models: "This is Titanic risk modelling, looking backwards from the deck of the Titanic in April 1912 and predicting a smooth voyage." The Network for Greening the Financial System estimates a 25% global GDP drop with 2°C warming by 2050, equating to $25 trillion in annual losses, though it anticipates growth offsetting damages.
Copernicus data reveals 2025 averaged 1.47°C above pre-industrial levels, following 2023 and 2024 as the warmest years. The 2024 anomaly reached 1.6°C, making the three-year average exceed 1.5°C for the first time. If trends persist, the long-term 1.5°C threshold could be breached by 2030, earlier than the 2045 forecast from the Paris Agreement's signing a decade ago.
Warming acceleration stems partly from reduced sulfur pollution unmasking 0.5°C of heat, alongside record 2025 fossil fuel emissions. Samantha Burgess of Copernicus observed, "Emissions haven’t come down as fast as people believed they would." This intensifies extremes: January 2025 Los Angeles wildfires were twice as likely and 25 times larger due to climate change, while Hurricane Melissa's winds were at least 16 km/h stronger.
Burgess highlighted regional effects: "When we have 1.5 degrees of warming at a global level, that means that heatwaves are often 3 or 4 or even 10 degrees warmer than they otherwise would have been." Polar regions face the most warming, with 2025 marking Antarctica's hottest year and record-low combined Arctic-Antarctic sea ice.
On a brighter note, global emissions are slowing, with China's flatlining. Timothy Osborn of the University of East Anglia predicts steady warming without speedup. King advocates methane cuts from leaks, potentially lowering warming by 0.2°C by 2050: "This is a critical part of the pathway."
The report calls for abandoning assumptions of endless economic expansion to avert catastrophe.