Frankfurt: Climate disasters such as drought, wildfires, floods and storms can be reduced by up to five percent from Eurozone’s GDP by 2030, economists warned in ECB blog posts on Wednesday.
Under a serious landscape, 20-member eurosone will not only face an economic hit from a range of natural hazards at home, but also abroad that will hit its supply chains.
The blog post stated that the total shock could be “the same slowdown as the economic impact of the global financial crisis”, the blog post said that the climate change was no longer a theoretical risk, but “a adjacent threat”.
The figure comes from modeling by network to greenery the financial system (NFGS), which is a global alliance of over 140 central banks and financial regulators that promote climate risk management in the financial sector.
This scenario is not billed as an forecast, but what can happen within the next five years, its admirable warning, including modeling, includes weather events that can be expected once every 50 years.
Under the most severe landscape, “disasters and policy stagnation”, “Europe will face the back-to-back waves of the extreme summer, drought and wildfire starting in 2026, as well as destructive floods and storms.
Under a more optimistic path with the “highway to Paris” labeled – a reference to the 2015 Paris Agreement, from which President Donald Trump withdrew to the United States in January – would be able to absorb Europe transition costs and no hits for development.
The blog post stated that disruption of the supply chain may promote inflation and development development, while excessive heat and disasters can directly affect workers, property and infrastructure.
Western Europe had its hottest June on record last month, which reduced short hours for schools and workplaces and also increased by heat and increased breaks to deal with heat. – AFP
