Climate losses

Climate change is not just an ecological crisis. It has the potential to do significant harm to economies all over the world. But the most affected are developing economies that cannot afford to face climate blowbacks. In its recent report, the UN Economic and Social Commission has similar predictions for South Asia, as total average annual losses are estimated to be around $161 billion amid the current climate condition. This figure could easily rise to $217 billion under the moderate climate conditions and to a staggering $322 billion in the worst-case scenario.

The report further states that Pakistan’s losses will amount to $26 billion — second to India’s predicted average annual loss of $225 billion. But with regard to GDP, Pakistan is projected to face the highest loss of 9.1%, indicating the consequences will be far worse here than in our neighbourbood. Reasons for these losses are fairly straightforward. Increasing intensity of natural disasters such as floods and droughts coupled with weather events such as rising ocean temperatures and melting glaciers are adversely affecting Pakistan’s agriculture, environment and marine life. It has also severely deteriorated quality of life for citizens. All this in turn affects industries and businesses, and results in the dwindling of resources that are not enough to meet the needs to the people.

The government is yet to make the connection between climate change and the economy as existing initiatives only seem to have short-term implications. It has become necessary for officials to assert this narrative on international lenders who, surprisingly, either seem oblivious of this or fail to acknowledge it in the case of Pakistan. This might help leverage some relief. Fighting climate change means fighting for the economy. The sooner officials realise this the better it is for all.

 

Published in The Express Tribune, July 4^th, 2022.

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