# Financial firms are warning that climate change poses escalating risks to the global economy. A report by the Potsdam Institute for Climate Impact Research estimates that by 2049, climate-related disasters could cost approximately 703-trillion-rand annually. Insurers caution that rising risks are making some regions uninsurable, potentially destabilising financial systems and leading to properties that cannot be financed. They warn that this could trigger a climate-induced credit crunch, threatening the stability of the financial sector.
Financial firms point to growing economic cost of climate change