Climate crisis to shrink G7 economies twice as much as Covid-19, says research

G7 countries will lose $5tn a year by 2050 if temperatures rise by 2.6C

The economies of rich countries will shrink by twice as much as they did in the Covid-19 crisis if they fail to tackle rising greenhouse gas emissions, according to research.

The G7 countries - the world's biggest industrialised economies - will lose 8.5% of GDP a year, or nearly $5tn wiped off their economies, within 30 years if temperatures rise by 2.6C, as they are likely to on the basis of government pledges and policies around the world, according to research from Oxfam and the Swiss Re Institute.