“One degree Celsius rise in temperature is associated with 10% productivity loss in farming. For us, it means losing about four million metric tonnes of food grain, amounting to about US$ 2.5 billion. That is about 2% of our GDP. Adding up the damages to property and other losses, we are faced with a total loss of about 3-4% of GDP. Without these losses, we could have easily secured much higher growth.”
-Sheikh Hasina, Prime Minister of Bangladesh
Most people think the biggest costs associated with climate change are in trying to avoid it by reducing carbon emissions. However, a new study (Climate Vulnerability Monitor 2nd Ed) by DARA concludes that climate change is already costing us $1.2 trillion in foregone prosperity. Yes, that is trillion with a T. This is roughly 1.6% of global GDP. By 2030 the effects of climate change could amount to 3.2% of global GDP with most of the pain being felt by developing nations. Here are some more stats:
• Climate change and a carbon-intensive economy considered a leading global cause of death today, responsible for 5 million deaths each year – 400,000 due to hunger and communicable diseases aggravated by climate change and 4.5 million carbon economy deaths due mainly to air pollution
• Losses for lower-income countries are already extreme: 11% of GDP on average for Least Developed Countries already by 2030
• Major economies are heavily hit: in less than 20 years China will incur the greatest share of all losses at over 1.2 trillion dollars; the US economy will be held back by more 2% of GDP; India, over 5% of its GDP
However, the future doesn’t have to be so doom and gloom. The report concludes that much of these costs can be avoided by emissions reduction investments of just 0.5% of GDP and $150 billion per year in support to mitigate the effects in the countries most vulnerable.