Economists from the University of Exeter and the think tank Carbon Tracker Initiative have highlighted critical flaws in current economic models which ignore the long-term impacts of climate change on the economy. Their report, entitled "Recalibrating Climate Risk," explains how existing models predict continuous economic growth without considering the dire consequences of climate variations. This oversight poses a significant risk, potentially leading to a crisis that could surpass the one experienced in 2008.

One significant concern outlined in the report is the misunderstanding of 'tipping points' related to climate change, which are thresholds that, once crossed, could lead to irreversible damage to the environment and economy. Experts point out that extreme weather events driven by climate change have more drastic implications than just tracking average temperature increases. This miscalculation can lead to sectors of the economy being left vulnerable to catastrophic events, without proper precautions and foresight.

The findings urge policymakers to reassess how economic forecasts are made and to incorporate the growing unpredictability of climate impacts into their models. As current predictions largely remain optimistic, economists alert that failure to adjust to these realities could result in severe repercussions for global markets and industries, especially those most susceptible to climate-induced disruptions.