The global cost of greenhouse gas emissions is nearly double previous estimates, according to a study published Thursday by researchers at the University of California, San Diego's Scripps Institution of Oceanography. The study, which incorporates ocean damage into the social cost of carbon (SCC) assessment, estimates global coral loss, fisheries disruption, and coastal infrastructure destruction to cost nearly $2 trillion annually.

The inclusion of ocean-related damages fundamentally alters the measurement of climate finance, according to the researchers. The social cost of carbon is an accounting method used to determine the monetary cost of each ton of carbon dioxide released into the atmosphere. This revised calculation significantly impacts how governments and businesses evaluate the economic consequences of carbon emissions and climate-related policies.

Bernardo Bastien-Olvera, who led the study during his postdoctoral fellowship at Scripps, stated, "For decades, we’ve been estimating the economic cost of climate change while effectively assigning a value of zero to the ocean." He emphasized that "Ocean loss is not just an environmental issue, but a central part of the economic story of climate change."

The $2 trillion annual cost encompasses a range of economic impacts. Coral reef degradation affects tourism revenue and coastal protection, while fisheries disruption impacts the livelihoods of millions who depend on them for food and income. Coastal infrastructure damage, exacerbated by rising sea levels and extreme weather events, requires costly repairs and relocation efforts.

The SCC is a critical tool for policymakers when considering regulations and investments related to climate change. A higher SCC justifies more aggressive climate action, as it demonstrates a greater economic benefit from reducing emissions. This new study suggests that the economic case for transitioning to a low-carbon economy is even stronger than previously understood.

The updated SCC could influence investment decisions across various sectors, including energy, transportation, and agriculture. Companies may face increased pressure to reduce their carbon footprint and invest in sustainable practices. Governments may also be compelled to implement stricter environmental regulations and carbon pricing mechanisms.

The research highlights the interconnectedness of the global economy and the marine environment. Ignoring the economic value of the ocean in climate assessments has led to an underestimation of the true cost of climate change, according to the study's authors. The findings are expected to spur further research into the economic impacts of ocean degradation and inform more comprehensive climate policies.