\n Published on
\n 15\/01\/2026 – 6:00 GMT+1\n <\/p>\n
The world has \u201cseriously underestimated\u201d the rate of global warming<\/a>and its impact on the economy, as scientists call for an urgent \u201crecovery plan\u201d.<\/p>\n A new report from the Institute and Faculty of Actuaries (IFoA) and the University of Exeter warns that global temperatures are accelerating faster than previously predicted. It means that without immediate measures, the Earth is now likely to reach 2\u2103 above pre-industrial levels before 2050. <\/p>\n This rate of warming has been linked to \u201ccatastrophic\u201d impacts on societies and economies worldwide, risking major disruption to water and food systems, migration and human health. <\/p>\n Why is the world warming faster than we thought?<\/p>\n The Parasol Lost <\/a>report suggests this increased rate of heating is due to a loss of \u201caerosol cooling\u201d, a hidden sunshade effect created by air pollution. Aerosol cooling has offset around 0.5\u2103 of warming, but as the world cuts sources of pollution, this hidden sunshade is now receding. <\/p>\n Researchers say the faster rate of warming is also explained by Earth\u2019s sensitivity to greenhouse gases. This refers to how much the Earth\u2019s average surface temperature will rise in response to a doubling of emissions compared to pre-industrial amounts.<\/p>\n The study warns that this means policymakers and financial institutions are \u201cunderestimating\u201d climate risks that could undermine the global financial system, climate-driven inflation, financial \u201cshocks\u201d, and insurance companies withdrawing from high-risk areas much sooner than many expect.<\/p>\n Global warming\u2019s risk to the economy<\/p>\n