Economic modelling plays a crucial role in projecting the costs and benefits of climate action. These models can evaluate the impacts of different policy scenarios on emissions, economic growth, and public finances. They can also assess the potential economic consequences of climate change itself, such as the effect on agricultural productivity or the cost of extreme weather events.
Sustainable Development Goals and Climate Economics
The United Nations Sustainable Development Goals (SDGs) provide a framework for addressing global challenges, including climate change. The goals recognize the interconnected nature of economic development, social inclusion, and environmental sustainability. Climate economics must align with these broader objectives, ensuring that financial decisions support a sustainable and equitable future.