Climate change could cost 19% of GDP

A new report highlights te potential for major losses due to climate change. Some countries could see costs mounting to as much as 19% of their GDP by 2030 according to the report by the Economics of Climate Adaptation Working Group (a partnership between the Global Environment Facility, McKinsey & Company, Swiss Re, the Rockefeller Foundation, ClimateWorks Foundation, the European Commission, and Standard Chartered Bank).

However it’s not all bad news from this report as it seeks to highlight that much of those losses could be offset by mitigation measures and better use of risk transfer methods such as insurance and catastrophe bonds. Micro-insurance and microfinance initiatives are also going to be key to help mitigate and minimise the losses that climate change will inevitably bring.

You can download the full report in PDF format here.