Effect Of Climate Change On Economy
Climate change involves long-term shifts in temperature and weather patterns. These shifts may be natural but since 1800, human activities have been the main driver of Climate change, primarily due to the burning of fossil fuels like (oil, coal, and gas) Which produce heat-trapping gasses.
How climate change affects the Economy
The largest impact of climate change is that it could eradicate 18% of the GDP of the global economy by 2050 if the worldwide l temperature rises by 3.2℃.
The world economic forum Global Risk Report 2021 identified climate action failure as the most impactful and second most likely long-term risk facing the world in a year when populations continued to lessen the impacts of the Covid-19 Pandemic.
Climate change’s effect ranges from sea level rise and more frequent extreme weather events to loss of biodiversity and increased risk of diseases. Climate change impacts every character of life_humans, plants, and animals.
Who is most impacted by Climate change
Individuals who are already struggling with material poverty are disadvantaged by climate change.
Jobs in agriculture, fisheries, aquaculture, and forestry are highly reliant on predictable weather patterns, healthy soil, water, forest, and many more. The race to industrialize the world has left many communities with renewed agriculture crises in wake of deforestation, overexploitation, soil erosion, and industrial pollution.
- Low-income areas
As weather patterns change and extreme weather events increase in frequency and strength, this is a disadvantage for certain communities. People living in rural areas are miles away from aid centers, and hospitals, even food, and water are difficult to use during climate-related disasters.
Extreme weather events are known to create poverty traps or conditions linked to health, education, livestock, and assets that preserve the nature of poverty.
Much of our society's critical infrastructure is at risk from flooding such as sea-level rise.
- Human Health and Productivity
Increasing warm temperature and precipitation is a serious risk of waterborne and foodborne diseases and allergies. Extreme weather and climate-related natural disasters can also increase mental health issues. Mostly elderly, children and low-income communities are affected by these climate changes.
Researchers show that productivity in those regions that are affected by climate change can decline up to 5%...
As the water temperature increase, water quality could suffer due to more frequent algal blooms which can be toxic, thus shrinking recreational water activities and freshwater fishing. Most frequent and several wildfires can worsen air quality hence discouraging tourism.Sea level rise could submerge small islands and coastal areas, While deforestation and its destructive impacts on biodiversity could make some tourist destination less effective.
- Business and Financial Market
Climate change and its impact across the globe can threaten business and financial markets in a variety of ways. The frequency and intensity of extreme weather can damage factories, and supply chain operations and disrupt transport. Drought caused by Climate change can make water more expensive which directly affects the cost of raw materials and production.
Can We overthrow The Impacts of Climate Change?
Yes, some solutions are available to reverse the impacts of Climate change.
As we invest in Green Technology, Advocate for green policy and make small changes to reduce carbon footprint, Direct monetary donations to organizations working to reverse the threat of climate change, We can reverse the impacts of climate change.