Climate change is not only a physical threat, but it also affects the world’s economy. A major new study published in the journal Nature on March 25, 2026, puts a clear number on this impact. It finds that carbon dioxide (CO₂) emissions from the United States caused about $10.2 trillion in total economic damage worldwide between 1990 and 2020. This makes the U.S. the largest single contributor to climate-related economic loss over that period.

The study shows that emissions slow economic growth in many countries. Rising temperatures cut productivity, lower output, and hurt long-term economic performance around the globe.

Marshall Burke, the lead author of the study, remarked:

“If you warm people up a little bit, we see very clear historical evidence, you grow a little bit less quickly. If you accumulate those effects over 30 years, you just get a really large change by the end of 30 years. It’s like death by a thousand cuts. And you have people being harmed who did not cause the problem, and that feels just fundamentally unfair.”

The researchers focused on carbon dioxide, the most common greenhouse gas. They used data on how temperature affects economic activity and then linked that to how much CO₂ different countries have emitted since 1990. This method links climate science to real economic results, including slower growth, lower productivity, and smaller national outputs.

Counting the Dollars: $10 Trillion in U.S.-Linked Damage

One of the study’s central findings is striking. From 1990 to 2020, U.S. emissions likely caused around $10.2 trillion in global economic damage. This means that warming linked to U.S. emissions has reduced economic production across many countries. The study links these impacts to heat’s long-term effects on labor, agriculture, and overall economic growth.

The damage is not confined to other nations. Roughly 30% of that $10.2 trillion figure is estimated to have occurred within the United States itself. In other words, U.S. emissions have slowed economic growth at home as well as abroad. The remaining impacts are spread across the global economy.

The researchers found that U.S. emissions led to about $500 billion in damage in India and around $330 billion in Brazil during that time. These figures show how carbon released in one area can affect economies far away.

A New Framework for Loss and Damage

The Nature study introduces a new framework for assessing what scientists call “loss and damage.” This term refers to harms that cannot be prevented by reducing emissions or avoided through adaptation alone.

The study uses economic data and climate models. It tracks how temperature changes over the years impact economic output.

• To put the numbers into context: one tonne of CO₂ emitted in 1990 is estimated to have caused about $180 in global economic damages by 2020.

But that same tonne is projected to cause an additional $1,840 of cumulative damage by 2100, as warming continues and its effects compound over time. This highlights that past emissions still contribute to future economic harm.

The researchers highlight that these estimates focus on economic output, like goods and services. They do not account for all types of climate damage. They do not include costs from loss of life, health impacts, biodiversity collapse, cultural heritage losses, or many kinds of infrastructure damage. These excluded impacts could raise the true total cost of climate change even further.

The Social Cost of Carbon Revisited

This study is part of a broader scientific effort to understand the economic impacts of climate change. Climate and economic models show that rising temperatures are already slowing economic growth. If emissions stay high, this slowdown will get worse in the future.

Analyses by major international institutions and research groups project that climate change could reduce global GDP by a significant percentage by mid-century. This is compared to scenarios with strong mitigation, though exact figures vary by method.

The concept of estimating a “social cost of carbon” (SCC) — a monetary estimate of economic damage per tonne of CO₂ — has been used in policy analysis for years. It helps governments weigh trade-offs in climate policy. For example, they can decide how much to invest in emissions cuts versus adaptation.

However, traditional SCC estimates have been debated. They depend on assumptions about future growth, discount rates, and climate sensitivity. The Nature study advances this approach by tying economic outcomes directly to observed climate impacts.

Economists and climate scientists agree that warming impacts several areas. These include agricultural yields, labor productivity, energy demand, and health outcomes. These effects reduce economic output and increase costs for businesses and governments. The latest research makes these links more explicit by assigning dollar values to the historical impacts of emissions.

Equity and Global Responsibility

The research’s results also highlight important equity questions. Low-income countries often face bigger economic impacts compared to their emissions histories.

For example, nations with warmer climates and more fragile infrastructure may experience greater output losses due to temperature increases. These effects grow over time and can worsen existing development challenges.

At the same time, richer countries with higher historical emissions may take a larger share of responsibility for damage. The Nature study shows it is possible to calculate responsibility in monetary terms. However, turning those numbers into legal or financial obligations is still complex.

Remarkably, the paper also shows that climate damage can be linked to specific activities, individuals, and companies. Burning fossil fuels for long flights greatly adds to warming.

• Just one round-trip intercontinental flight each year for ten years can cause about $25,000 in global economic damage by 2100.

Bill Gates’ emissions stand out due to his frequent air travel and high energy use. These personal and business choices significantly contribute to his overall impact. Saudi Aramco, a top fossil fuel producer, has caused an estimated $3 trillion in climate-related economic damage worldwide since 1991.

Tail Risks and Future Costs

The researchers also point toward the future. It finds that future damages from past emissions are much larger than the losses already accrued.

Since CO₂ remains in the atmosphere for centuries, its warming effects — and the economic damages linked to them — will persist well beyond 2020. This “tail risk” means that the total cost of historical emissions could rise sharply over the rest of this century.

Climate risk is increasingly integrated into economic planning and finance. Governments, businesses, and international institutions are incorporating climate scenarios into investment decisions and risk models.

This includes assessing how rising temperatures may affect infrastructure costs, insurance markets, supply chains, and national budgets. Without strong mitigation and adaptation measures, these economic pressures are expected to grow.

A Shared Reality, Quantified

The Nature study offers a clear and data-based way to think about the economic harms of climate change. Emissions from the United States since 1990 have caused over $10 trillion in global economic damage. This includes harm in the U.S., India, and Brazil. 

These findings do not assign legal liability. However, they provide a meaningful picture of how climate change affects the global economy in terms of the social costs of carbon. They show that the costs of climate impacts are measurable and significant.

As the world continues to adapt and respond to climate change, understanding these economic links will be crucial for policymakers, businesses, and communities.

• READ MORE: European Central Bank (ECB) Tilts Green: 38% Cut in Portfolio Emissions, Adds Nature Risk to Climate Disclosures

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