Agriculture: Water Resources Crop Yields and Quality Pest and Disease Management Tourism Natural Disasters Seasonal Variability Infrastructure Damage Insurance Increased Claims Reinsurance Costs
Our mother earth is getting warmer day by day due to natural as well as anthropogenic activities leading to climate change. we have already breached 1.5 degrees Celsius according to International data which was agreed upon in the Paris Agreement (2015) to reduce emissions. In 1992 the global wake hRead more
Our mother earth is getting warmer day by day due to natural as well as anthropogenic activities leading to climate change. we have already breached 1.5 degrees Celsius according to International data which was agreed upon in the Paris Agreement (2015) to reduce emissions.
In 1992 the global wake happened which led to the formation of the United Nations Framework on Climate Change and Conservation (UNFCCC) which explicitly addresses climate change, establishing an annual forum (the Conference of the Parties or COP) for international climate negotiations. recently we addressed COP 28 which was held in DUBAI. COP28 explicitly addressed the need to transition away from fossil fuels in energy systems, in a just, orderly and equitable manner, to achieve net-zero emissions by 2050. It also established a Loss and Damage fund which will help developing countries to have strong financial support to transform energy and technology sustainably.
although many treaties and conventions have been signed, we cannot achieve them because of the rigid nature of developed countries like the United States, which is backing out from financial assistance. also, we are living in an unstable world with lots of war which shifts the focus from sustainability to warfare.
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Climate change has resulted in negative implications for some sectors, such as agriculture, tourism and insurance due to extreme weather events and this has translated into significant economic impacts. Agriculture: Changing climate patterns are harming crop and livestock, reducing income stability.Read more
Climate change has resulted in negative implications for some sectors, such as agriculture, tourism and insurance due to extreme weather events and this has translated into significant economic impacts.
See lessAgriculture: Changing climate patterns are harming crop and livestock, reducing income stability. Extreme weather events such as droughts and floods disrupt food production, further increasing the cost of production and reducing income. Investments in building climate-resilient practices need to be made but this also requires additional financial resources!
Tourism is a climate-sensitive sector. High temperatures, changing precipitation patterns, and more frequent extreme events can disrupt tourism—especially in coastal and island destinations—through impacts on beach tourism, water resource availability, heritage sites (including cultural and natural heritage), and transport (such as increased storm risks). Reduced numbers of tourists lead to decreased revenues for businesses and communities highly dependent on tourism and potential job losses.
Insurance: In view of the effects and the associated risks, the insurance industry is facing increase in risks and costs. Rising number of claims puts in pressure financial capacity of the industry what can subsequently cause escalation of costs for consumers as well as businesses.
In sum, climate change implies substantial economic costs for agriculture, tourism and insurance implying that adaptation strategies and investments are needed to reduce climate damages.