THE GROWING COST OF CLIMATE CHANGE

THE CONTEXT: Recent research by economists at the US National Bureau of Economic Research (NBER) reveals that global GDP could have been 37% higher had global warming not occurred between 1960 and 2019. This study adopts a holistic approach, contrasting with previous research that aggregated the impacts of climate change on a country-by-country basis. By linking global warming’s global and local effects, the study suggests that the economic costs of climate change could be significantly higher than previously estimated.

ISSUES:

• Economic Impact of Global Warming: Research from the US National Bureau of Economic Research (NBER) suggests that global GDP could have been 37% higher had global warming not occurred between 1960 and 2019. This research indicates that the economic costs of climate change are significantly higher than previously estimated, potentially six times more.
• Income Reduction Due to Climate Change: It references another study published in Nature, which predicts a nearly 20% drop in average incomes over the next 26 years due to climate change. This underscores the long-term economic risks posed by continuing global warming.
• Costs of Transition vs. Costs of Inaction: Both papers argue that while transitioning away from fossil fuels involves considerable costs, these are dwarfed by the economic damages that unchecked global warming is expected to inflict. This includes health impacts, reduced productivity, and compromised livelihoods due to extreme weather events.
• Vulnerability of Ecosystems and Livelihoods: There is a report from the UN Convention on Combating Desertification, which focuses on the degradation of rangelands, such as desert shrublands and mountain pastures. These ecosystems, crucial for carbon sequestration and supporting pastoralist communities, are highly vulnerable to climate change yet often overlooked in conservation efforts.
• Need for Adaptation and Resilience Building: Despite the global focus on mitigating climate change, there is a growing recognition of the need to invest in adaptation strategies. These include protecting communities from extreme weather, drought-proofing agriculture, and enhancing healthcare to cope with climate-induced health crises. However, adaptation efforts are underfunded, and a new climate funding paradigm is needed to address this gap, especially in the upcoming Conference of the Parties (CoP) in Baku, Azerbaijan.

THE WAY FORWARD:

• Enhanced Ecosystem Conservation and Restoration: Prioritize the restoration and conservation of vulnerable ecosystems, such as drylands and rangelands, recognizing their critical role as carbon sinks and their socio-ecological importance. This involves implementing sustainable land management practices, reforestation, afforestation projects, and protecting natural habitats to enhance biodiversity and ecosystem resilience.
• Integration of Climate Adaptation in Development Policies: Integrate climate adaptation measures into national and regional development policies. This includes developing infrastructure resilient to climate change impacts, such as floods and heatwaves, and promoting drought-resistant agricultural practices. Policies should also support the socio-economic integration of communities dependent on vulnerable ecosystems, such as pastoralists, by recognizing and bolstering their traditional knowledge and practices.
• Scaling Up Investment in Climate Resilience: Significantly increase funding for climate adaptation and resilience-building projects. This involves both public and private investments in infrastructure, healthcare, and disaster risk reduction. International financial mechanisms, such as the Green Climate Fund, should be leveraged to support adaptation projects in the most vulnerable regions, ensuring that funds are accessible and equitably distributed.
• Promoting Nature-based Solutions: Encourage the adoption of nature-based solutions to climate change, which involve utilizing natural processes to mitigate climate impacts and enhance resilience. Examples include creating urban green spaces to reduce heat island effects, constructing wetlands to manage flood risks, and practicing agroforestry to improve soil health and carbon sequestration.
• Strengthening Global and Local Climate Governance: Foster stronger global cooperation on climate action, focusing on supporting vulnerable regions and communities. This includes enhancing international frameworks for climate finance, technology transfer, and capacity-building. At the local level, empower communities to participate in climate decision-making processes, ensuring that adaptation measures are locally relevant and culturally appropriate.

THE CONCLUSION:

The findings from the NBER and the UN Convention on Combating Desertification underscore the urgent need for global climate policies to focus on mitigation and adaptation strategies. As the world grapples with the increasing impacts of climate change, such as heatwaves, floods, and storms, building resilience against these effects becomes paramount. The upcoming climate funding discussions at the CoP in Baku must prioritize adaptation measures, which remain underfunded despite growing recognition of their necessity.

UPSC PAST YEAR QUESTIONS:

Q.1 Describe the significant outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are India’s commitments at this conference? 2021

Q.2 Climate Change is a global problem. How will India be affected by climate change? How will the Himalayan and coastal states of India be affected by climate change? 2017

MAINS PRACTICE QUESTION:

Q.1 Examine the economic impacts of global warming from 1960 to 2019, as highlighted by recent research from the National Bureau of Economic Research (NBER). Additionally, evaluate the significance of ecosystems like drylands and rangelands in the context of climate change and their role in carbon sequestration.

SOURCE:

https://indianexpress.com/article/opinion/editorials/the-growing-cost-of-climate-change-9345786/