Financial Soultions: The hefty bill of climate change!

Sept. 14, 2009 - PRLog -- A recent report by Economics of Climate Adaptation Working Group, has indicated to Financial Soultions that developing nations will be most susceptible to the consequences of climate change but a lot of their economic loss may be avoidable.

Using prevention and alleviation measures, risk transfer like insurance or catastrophe bonds can play an important role by limiting losses from catastrophic events, increasing preparedness to invest and providing price signals to financial markets.

Existing adaptation measures like sea barriers, enhanced drainage and building regulations could prevent 40 to 100 percent of risk, from current and future climate conditions, the report available to Financial Soultions said.

The United Nations Framework Convention on Climate Change has approximated that the globe will spend an extra $36 billion to $135 billion each year by 2030 to tackle the impact of climate change.

"If current development trends continue to 2030, the locations studied will lose between 1-12 percent of GDP as a result of existing climate patterns," Financial Soultions has learned.

When upcoming threats and the effects of economic growth are factored in, the overall possible loss rises to as much as 19 percent of GDP.

Financial Soultions understands that research for the report focused on susceptible areas in northern China, Georgetown in Guyana, Maharashtra in India, Mopti in Mali, the island of Samoa, and Tanzania’s central region, Hull in Britain and South Florida in the United States.

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