By Jan Corfee-Morlot, New Climate Economy/ World Resources Institute (WRI), Nancy Kete, Kete Consulting and Delger Erdenesanaa, WRI
This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.
Investment in tackling climate change is still very small compared to the expected adverse impacts on society and nature. The economic costs of climate change are estimated to range from 2-10% of global GDP loss by the end of this century. Flood-related damages alone under high emissions scenarios might account for 3% of global GDP in 2100, translating to losses in the range of USD 14-27 trillion per year. In today’s US dollars, this would be equivalent to losing the combined GDP of China and India in the best-case scenario, and US, Canada and Germany combined, in the worst case.
Currently most climate funding supports work to reduce emissions rather than for adaptation to impacts. While the world must strive for net-zero emissions and the goals of the Paris Agreement, we must at the same time plan for conditions that may be much worse. Continue reading