The Bank of Korea "Reduced GDP by 2100% in response to the climate change stage"

Analysts suggested that if carbon neutrality policies are not implemented to cope with climate change, Korea's GDP will decrease by 21% in 2100 compared to assuming that there is no climate change.

According to the "Impact of Climate Change Risk on the Real Economy" released by seven people, including Kim Jae-yoon, head of the Bank of Korea's Sustainable Growth Research Team, it is analyzed that failure to respond to climate change will not incur carbon reduction costs in the short term, but in the long run, climate damage will have a ripple effect on the entire real economy, reducing the annual average economic growth rate by 0.3%p by 2100.

On the other hand, if the greenhouse gas reduction policy is implemented to curb the increase in average global temperature to within 1.5℃ compared to before industrialization, Korea's GDP will decrease by
13.1% in 2050, but the decrease will decrease to 10.2% in 2100.

The authors said that the policy costs were incurred at the beginning of the implementation of the greenhouse gas reduction policy, but after that, we found that the resilience of our economy increased due to technological advances and climate damage reduction.