India, Feb. 9 -- A new report warns that current economic and financial models severely underestimate climate risks from extreme weather and potential tipping points

Researchers say climate change is treated as a marginal shock, despite evidence that impacts can disrupt multiple sectors and regions at once

The study highlights how reliance on average temperature and GDP masks losses from extreme events, inequality and ecosystem damage

Authors urge policymakers and investors to recognise the limits of existing models when assessing climate and financial stability risks

Current economic models and the policy guidance drawn from them are grossly underestimating the compounding risks of climate change, particularly from extreme weather ev...