Climate change is already damaging global economy, report finds

Economic impact of global warming is costing the world more than $1.2 trillion a year, wiping 1.6% annually from global GDP
Fiona Harvey guardian.co.uk 26 Sep 12;

Climate change is already contributing to the deaths of nearly 400,000 people a year and costing the world more than $1.2 trillion, wiping 1.6% annually from global GDP, according to a new study.

The impacts are being felt most keenly in developing countries, according to the research, where damage to agricultural production from extreme weather linked to climate change is contributing to deaths from malnutrition, poverty and their associated diseases.

Air pollution caused by the use of fossil fuels is also separately contributing to the deaths of at least 4.5m people a year, the report found.

The 331-page study, entitled Climate Vulnerability Monitor: A Guide to the Cold Calculus of A Hot Planet and published on Wednesday, was carried out by the DARA group, a non-governmental organisation based in Europe, and the Climate Vulnerable Forum. It was written by more than 50 scientists, economists and policy experts, and commissioned by 20 governments.

By 2030, the researchers estimate, the cost of climate change and air pollution combined will rise to 3.2% of global GDP, with the world's least developed countries forecast to bear the brunt, suffering losses of up to 11% of their GDP.

Sheikh Hasina, prime minister of Bangladesh, said: "A 1C rise in temperature [temperatures have already risen by 0.7C globally since the end of the 19th century] is associated with 10% productivity loss in farming. For us, it means losing about 4m tonnes of food grain, amounting to about $2.5bn. That is about 2% of our GDP. Adding up the damages to property and other losses, we are faced with a total loss of about 3-4% of GDP. Without these losses, we could have easily secured much higher growth."

But major economies will also take a hit, as extremes of weather and the associated damage – droughts, floods and more severe storms – could wipe 2% of the GDP of the US by 2030, while similar effects could cost China $1.2tr by the same date.

While many governments have taken the view that climate change is a long-term problem, there is a growing body of opinion that the effects are already being felt. Scientists have been alarmed by the increasingly rapid melting of Arctic sea ice, which reached a new record minimum this year and, if melting continues at similar rates, could be ice free in summer by the end of the decade. Some research suggests that this melting could be linked to cold, dull and rainy summers in parts of Europe – such as has been the predominant summer weather in the UK for the last six years. In the US, this year's severe drought has raised food prices and in India the disruption to the monsoon has caused widespread damage to farmers.

Connie Hedegaard, the European Union's climate chief, warned that extreme weather was becoming more common, as the effects of climate change take hold. "Climate change and weather extremes are not about a distant future," she wrote in a comment for the Guardian last week. "Formerly one-off extreme weather episodes seem to be becoming the new normal."

Michael Zammit Cutajar, former executive secretary of the UN Framework Convention on Climate Change, said: "Climate change is not just a distant threat but a present danger – its economic impact is already with us."

100 million will die by 2030 if world fails to act on climate: report
Nina Chestney PlanetArk 26 Sep 12;

More than 100 million people will die and global economic growth will be cut by 3.2 percent of gross domestic product (GDP) by 2030 if the world fails to tackle climate change, a report commissioned by 20 governments said on Wednesday.

As global average temperatures rise due to greenhouse gas emissions, the effects on the planet, such as melting ice caps, extreme weather, drought and rising sea levels, will threaten populations and livelihoods, said the report conducted by humanitarian organization DARA.

It calculated that five million deaths occur each year from air pollution, hunger and disease as a result of climate change and carbon-intensive economies, and that toll would likely rise to six million a year by 2030 if current patterns of fossil fuel use continue.

More than 90 percent of those deaths will occur in developing countries, said the report that calculated the human and economic impact of climate change on 184 countries in 2010 and 2030. It was commissioned by the Climate Vulnerable Forum, a partnership of 20 developing countries threatened by climate change.

"A combined climate-carbon crisis is estimated to claim 100 million lives between now and the end of the next decade," the report said.

It said the effects of climate change had lowered global output by 1.6 percent of world GDP, or by about $1.2 trillion a year, and losses could double to 3.2 percent of global GDP by 2030 if global temperatures are allowed to rise, surpassing 10 percent before 2100.

It estimated the cost of moving the world to a low-carbon economy at about 0.5 percent of GDP this decade.

COUNTING THE COST

British economist Nicholas Stern told Reuters earlier this year investment equivalent to 2 percent of global GDP was needed to limit, prevent and adapt to climate change. His report on the economics of climate change in 2006 said an average global temperature rise of 2-3 degrees Celsius in the next 50 years could reduce global consumption per head by up to 20 percent.

Temperatures have already risen by about 0.8 degrees Celsius above pre-industrial times. Almost 200 nations agreed in 2010 to limit the global average temperature rise to below 2C (3.6 Fahrenheit) to avoid dangerous impacts from climate change.

But climate scientists have warned that the chance of limiting the rise to below 2C is getting smaller as global greenhouse gas emissions rise due to burning fossil fuels.

The world's poorest nations are the most vulnerable as they face increased risk of drought, water shortages, crop failure, poverty and disease. On average, they could see an 11 percent loss in GDP by 2030 due to climate change, DARA said.

"One degree Celsius rise in temperature is associated with 10 percent productivity loss in farming. For us, it means losing about 4 million metric tonnes of food grain, amounting to about $2.5 billion. That is about 2 percent of our GDP," Bangladesh's Prime Minister Sheikh Hasina said in response to the report.

"Adding up the damages to property and other losses, we are faced with a total loss of about 3-4 percent of GDP."

Even the biggest and most rapidly developing economies will not escape unscathed. The United States and China could see a 2.1 percent reduction in their respective GDPs by 2030, while India could experience a more than 5 percent loss.

The full report is available at: daraint.org/

(Editing by Janet Lawrence)