Time for central banks to stop dithering over climate

Ignoring climate risks will complicate macroeconomic management

After a drop in 2020 due to Covid-19, global greenhouse gas emissions will grow this year and again in 2022. It gets worse. According to the International Energy Agency, 2023 is projected to be the year with the ‘greatest levels of carbon dioxide output in human history’. The Intergovernmental Panel on Climate Change’s sixth assessment report has spelt out in detail that irreversible changes in climate due to human influence are witnessed across the globe.

Economic activity, of practically any and every kind, is strongly integrated with emissions that contribute to climate change, hence the sizeable drop in carbon emissions last year and strong snapbacks thereafter as output recovers to baseline. Output and GHGs go hand in hand, and will continue to do so.

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Πηγή: omfif.org

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