The Impact of Climate Change on Economies

Just one flood. More than 1,200 lives lost. 33 million people affected. Losses worth $30 billion. More than 2 million acres of cropland destroyed. $30 million in humanitarian aid deployed. 

That’s the reality of only the last 10 days in Pakistan, where one-third of the country is reportedly under water. 

What is causing such heavy rainfall, swelling of rivers and melting of glaciers - is it climate change? It certainly looks like it. And it’s about time we figure out and quantify its impact on the economies.

Experts suggest that this catastrophe sets back Pakistan by at least a decade - where, mind you, nearly one in four people live in extreme poverty. 

In the recent past, floods have also brought parts of India and Sri Lanka to their knees. The heart-wrenching human tragedy and how it affects livelihoods cannot be overstated.

Such disasters damage property and infrastructure and impact human health and productivity. It also has a negative effect on various sectors including agriculture, forestry, fisheries and tourism. Not to forget the disruption of trade and supply chains across the globe. Businesses and financial markets from the ground up suffer.

Suffice to say that climate change does not care for our man-made borders. Every time a country is ravaged by a natural disaster, the effect on the global economy is… felt.

What can we do? We can bring the community closer together

I truly believe that if the world is brought closer together, not by country but by simply presenting solutions for climate action, we can overcome any challenge. And secure the future of the coming generations. 

Experts, scientists, researchers, volunteers, nature professionals, nature lovers - everyone must come together to offer solidarity and above all, solutions.

Let’s talk about the solution of all solutions - Climate Finance. 

It’s critical that climate finance reaches the aforementioned developing nations and the vulnerable communities that are most affected. 

Not to say that the issue hasn’t been a focal point for concerned stakeholders. Infact, the lack of climate finance is one of the primary topics of discussion for this year’s COP27 being held in Africa. A continent which is also disproportionately affected by droughts and floods, despite contributing less than 3% to CO2 emissions. If you look closely, be it Pakistan, Sri Lanka or Bangladesh, the story is similar! 

That’s why we must come together to bridge the gap between communities of the developed and developing nations. We must cut across geographies, race, class, creed, and gender - to build a community for nature lovers and no one else (I’m hoping that means it’s ALL of us!).

We’re running out of time, say many climate activists. Others insist that the time for action is already past us… And now we must face the consequences of decades of carbonization. 

Climate change presents an opportunity for us to reinvent the wheel. Decarbonize the economy. Innovate. Change. 

That’s the only way we can overcome the crises knocking at our door.