Nowadays, climate change is challenging worldwide. The temperature of the reservoir and air is increasing, and sea levels are rising. Longer and more extreme dry spells threaten crops, wildlife, and freshwater resources. The variety of life in our world, from polar bears in the Arctic to sea turtles off the coast of Africa, is in peril due to climatic change. [1]
In addition, having major effects on the planet and individuals, environmental changes also pose a serious threat to economic stability. The weak areas of the economy to environmental change incorporate agriculture and water industry, energy, tourism, infrastructure, transport, and the financial market.
On the one hand, environmental changes lead only bad impact on the global economy. According to the worst-case scenario, if global temperatures rise by 3.2 C by 2050, the environmental change could cause a $23 trillion global economic decline and up to an 18% global GDP collapse. As a result, the global economy will experience a 3% decline in economic growth. [2]
Firstly, agriculture has been greatly impacted by environmental change. Crop yields are sensitive to atmospheric conditions, and as our environment becomes more limiting, more frequent dry spells and decreased access to surface and groundwater might reduce crop yields in areas where it is important to produce food. Furthermore, several farms were washed away, and farmed animals perished due to excessive rain and softening snow that generated noteworthy floods. [3]
Secondly, the rise of deficiencies in agriculture and the expansion in general costs level because of the weather change led us to consider the potential inflationary impact on the world economy. Decreased access to land might also be a sign of increased inflation. A few areas of the planet could eventually become terrible due to rising global temperatures, which would result in massive population movement. The need for less and less land will increase along with these developments' political and financial results. Also, rising worldwide food costs are probably going to reduce consumer incomes.
Thirdly, the travel industry will likewise experience because of the effect of environmental change. Due to less snow and ice, the country could lose two billion dollars in winter entertainment. Additionally, as water temperatures rise, the quality of the water may deteriorate due to more unusual and successive algal blooms, some of which may be poisonous, limiting freshwater fishing and other water sports. More frequent and severe forest fires will worsen the air quality and prevent the growth of the travel sector. Little islands and beachfront areas may get submerged as the ocean level rises, and some tourist destinations may become less desirable due to deforestation's severe impact on biodiversity. [4]
Fourthly, a significant part of the basic infrastructure of our general public is in danger of flooding. Likewise, communication frameworks will be impacted. Rising ocean levels pose a threat to server farms, traffic trade centers, endpoints, and more than 6000 kilometers of fiber optic cable. [3]
The recurrence and force of outrageous climate occasions in nations can harm factories, supply chains, and other frameworks, and disturb transport joins. Flooding of transport infrastructure; damage to roads, bridges, and other elements of road infrastructure, as well as the formation of ruts on roads due to high temperatures; delays in transport and an increase in the number of accidents due to increased heavy precipitation; ice deposition on power lines along railway tracks due to freezing rain; erosion of tracks due to heavy rains - all this will also lead to significant losses in the global economy.
Fifth, human well-being and efficiency will likewise fall victim to changes in the climate regime. It is estimated that mortality-related losses from extreme temperatures alone will cost $140 billion annually. [4]
The risk of water- and food-borne illnesses, food sensitivities, and the spread of bug-borne infections will increase with increased intensity and precipitation. Cataclysmic weather and environmental disasters might exacerbate emotional health problems.
These results of natural change may eventually result in diminished effectiveness. By 2090, it is expected that extreme temperatures will also prevent two billion workers from missing work, costing $160 billion in lost wages. Due to the intensity, work efficiency is expected to decrease by 3% in the Southeast and Southern Extraordinary Fields districts by 2100, and in some areas of Texas and Florida, it may decrease by more than 6%. [4]
Six, supply chain disruptions and decreased specialized productivity are raising operating costs. The effects of global environmental change on company productivity will be felt in several ways. The cost of natural resources and creation will likely increase due to the dry spell's increased water costs. Because of the unpredictability of the environment, businesses may need to manage asset expenses for production, transit of energy, and protection. Additionally, some products could become outdated or lose their markets, such as equipment used in coal mining or skiing in places where there is no longer any snow. [4]
The reputation of the company may also suffer if it is thought to be taking actions that harm the environment. Additionally, investors will not be eager to invest their money in such a corporation.
Seven, as our environment turns out to be more extreme, we are probably going to require more energy to cool our working and living conditions in the summer as well as to warm in crueler winters. Considering that energy supports a significant part of the world's creation, the effect of higher utility costs and higher energy costs on inflation will be felt all throughout the worldwide economy. Not exclusively will energy request change, yet supply may likewise be decreased as the productivity of existing power plants is undermined by higher temperatures. Moreover, solid breezes, weighty snowfall, ice, and ice can prompt electrical cable breaks and disturb ordinary power supply to shoppers. [3]
On the other hand, climate changes have a positive impact, too. Fortunately, environmental change likewise presents businesses with amazing open doors. The Carbon Divulgence Undertaking revealed that 225 of the world's 500 greatest organizations accepting environmental change could create more than $2.1 trillion in new business possibilities. Close to half of these organizations distinguished the two dangers and open doors which could considerably affect their business, while 32% of the organizations revealed that they didn't recognize dangers or valuable open doors which would decisively affect their business, and 14% of organizations distinguished open doors yet no dangers. [5]
There will be greater open doors to clean energy, tough and green structures, and energy production. Mixture and electric vehicle creation and the electric public travel area are supposed to develop. The development of the green framework and a stronger waterfront foundation could make many new positions. Moreover, there are groundbreaking new organizations – witness the sensational ascent of Beyond Meat, the organization selling plant-based burgers at Carl's Jr. furthermore, A&W.
New shipping delivery routes will become available for exchange when the icy ocean ice melts, greatly reducing truck time. Additionally, the warming Arctic may present greater opportunities for oil and gas drilling. To monitor extreme weather, weather satellites and radar technology will be used. All around the world, air conditioning and cooling equipment will be needed. New yields that are resistant to the effects of environmental change are being grown by biotech companies. Pharmaceutical companies predict an increased demand for medications to treat diseases, which emerged due to changes in the environmental system. [4]
To sum up, I would like to say that environmental changes have both positive and negative influences on the global economy. Hotter temperatures, ocean level ascent, and outrageous weather conditions will harm property and basic foundation, influence human well-being and efficiency, and adversely influence areas like agriculture, forestry, fisheries, and the travel industry. The interest in energy will increment as the power age turns out to be less dependable, and water supplies will be anxious.
At the same time, ecological change presents business opportunities entryways, new shipping lines, expansion of companies producing equipment for cooling air, diversification of pharmaceutical products, and improvement of modern technologies for monitoring and forecasting the weather.
Unfortunately, the increase in global temperatures keeps accelerating, and the financial losses caused by environmental disasters around the world have reached incredible heights. Due to the fact that environmental disasters are becoming more frequent and critically devastating, there is a limited amount of time left to handle the situation and overcome negative influences. If sufficient action is not taken, environmental change is probably going to make much more prominent harm to the economy, climate, and human well-being.
References:
1. Effects of climate change | threats | WWF. World Wildlife Fund. URL: https://www.worldwildlife.org/threats/effects-of-climate-change(date of access: 20.11.2022).
2. Swiss Re Group | Swiss Re. URL: https://www.swissre.com/dam/jcr:e73ee7c3-7f83-4c17-a2b8-8ef23a8d3312/swiss-re-institute-expertise-publication-economics-of-climate-change.pdf(date of access: 20.11.2022).
3. The impact of climate change on the global economy. Schroders. URL: https://prod.schroders.com/de/SysGlobalAssets/digital/us/pdfs/the-impact-of-climate-change.pdf(date of access: 20.11.2022).
4. How climate change impacts the economy. State of the Planet. URL: https://news.climate.columbia.edu/2019/06/20/climate-change-economy-impacts/(date of access: 20.11.2022).
5. Major risk or rosy opportunity - CDP. Home - CDP. URL: https://www.cdp.net/en/research/global-reports/global-climate-change-report-2018/climate-report-risks-and-opportunities(date of access: 20.11.2022).
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Supervisor: Khmil Oxana Oleksandrivna, teacher of the department of foreign philology and translation, State University of Trade and Economics, Kyiv, Ukraine
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