Flawed economic models mean the accelerating impact of the climate crisis could lead to a global financial crash, experts warn. But current economic models used by governments and financial institutions entirely miss such shocks, the researchers said, instead forecasting that steady economic growth will be slowed only by gradually rising average temperatures. The new report drew on expert judgments from 68 climate scientists from research institutions and government agencies in the UK, US, China and nine other countries. Current economic models can give estimates of losses that look precise but which the scientists said were wildly optimistic. Laurie Laybourn, at the Strategic Climate Risks Initiative, said: “We are currently living through a paradigm shift in the speed, scale and severity of risks driven by the climate-nature crisis.

Source: The Guardian February 05, 2026 20:00 UTC