The negative impact of climate change on agricultural yields, labour productivity and infrastructure will cost the world an estimated $38tn annually by 2050, scientists at the Potsdam Institute for Climate Impact Research (PIK) have said.

In a study, they found the world is “already committed” to an income reduction of 19% until 2050 due to the impact of past emissions, even if CO2 emissions were to be drastically cut down from today.

The damages incurred are an estimated six times larger than the mitigation costs needed to limit global warming to 2°C.

“Strong income reductions are projected for the majority of regions, including North America and Europe, with South Asia and Africa being most strongly affected. These are caused by the impact of climate change on various aspects that are relevant for economic growth such as agricultural yields, labour productivity or infrastructure,” says PIK scientist and first author of the study Maximilian Kotz.

While the damages mainly result from rising...