Climate change could reduce France’s Gross Domestic Product (GDP) by 3.6% in 2050, if adaptation and emission-reduction measures are not strengthened, according to a note released today by the French Ministry of Economy.
According to the information released, in France, climate change could also worsen the French public deficit by 1.8 percentage points of GDP in 2050.
In this regard, the impact on public finances will depend on the trajectory of global warming, the adaptation policies adopted, and future decisions on managing the effects of climate change, the French Ministry of Economy stated today.
The Directorate-General of the Treasury noted that the damages that could be avoided will also depend on the technologies available, notably in the construction sector, and on land-use planning options, such as rules to limit construction in flood-prone areas.
The magnitude of the economic impact constitutes a “significant cost to the economy,” according to the note released by the Ministry of Economy.
“Inaction is not an option. Not adapting has a cost, but it is also an economic opportunity and a matter of sovereignty,” said the French Minister of the Economy during an event dedicated to adapting the economy to climate change.
The initiative took place following the French Prime Minister’s call to accelerate work in this area.
For the projections presented, the Directorate-General of the Treasury relied on estimates from the NGFS (Network of Central Banks and Supervisors for Greening the Financial System), an international network of central banks and financial supervisory authorities that develops climate scenarios used as a common reference.
