Global warming is more than a growing environmental concern – it has serious economic implications that can be felt both locally and globally. Increased temperatures, raised sea levels, melting glaciers, shifting weather patterns, and a greater frequency of severe weather events are all effects of climate change caused bycarbon dioxide emissions. These changes can threaten access to water and food resources, disrupt transportation networks, and accelerate natural hazards like floods and hurricanes, negatively impacting the world economy.
A recent Bloomberg news report estimates that climate change could cut up to one-fifth of the global economy, costing between $23 trillion and $97 trillion by 2100. This could be caused by falling agricultural yields due to drought and higher crop temperatures, dwindling fish populations, and the financial implications of weather-related disasters and health problems. Equally troubling is the fact that the poor and those living in developing countries are the most vulnerable to economic losses due to climate change, and they are often least able to cope with them.
Closer to home, National Geographic points out that global warming will cost the United States economy dearly. Ecological damage caused by rising temperatures and sea levels will cause coastal businesses and industries to suffer, along with the power and public utilities needed to support them. Expensive coastal flood defenses will be required to protect people, homes, businesses, and infrastructure. Tourism, which is the top revenue generator for many coastal towns, could suffer from beach erosion and reduced visitor numbers.
It’s not all doom and gloom, however. According to a report by the United Nations Environment Program, making a transition to a low-carbon economy could create 24 million new jobs, including millions of green jobs, such as installing solar panels on roofs, retrofitting buildings for energy efficiency, and manufacturing electric vehicles. This shift in the job market will bring new opportunities for developing skills and knowledge, and many of the policy initiatives designed to tackle climate change may even generate additional income for households and businesses.
Governments must act quickly to limit carbon dioxide emissions and warming temperatures. Although the economic impacts of climate change cannot be avoided altogether, putting in place ambitious environmental policies and investing in green technology can help to reduce the damage and protect vulnerable people and businesses. As an important first step, governments should encourage progress towards meeting the targets set by the Paris Agreement and the Sustainable Development Goals, with support from the private sector, to begin the transition to a lower-carbon economy.
