67 countries worth US$44 trillion in economic output at risk from climate change
- 01 November 2013
LONDON: Economies contributing 31% of global economic output—US$44 trillion—will likely face huge climate change-related risks as soon as 2025 according to new research from Maplecroft analysts, providing further evidence to support the urgent case to accelerate a global clean economy.
The report, Climate Change and Environmental Risk Atlas, accounts the growing threat to our economic security from climate change, listing the risks associated with the extreme storms, floods and droughts that will increase 50% on current levels over the next 12 years.
Authors of the report list 67 countries--together contributing up to a third of global GDP--that are becoming increasingly vulnerable to climate change and less able to adapt. The most at risk country is Bangladesh, and key growth markets at risk include: India (20th) and Viet Nam (26th), which are classified in the ‘extreme risk’ category, and Indonesia (38th) and China (61st), which are classified as ‘high risk.’ The cities classified as lowest risk are London and Paris.
The report warns that businesses expanding into the listed emerging markets are highly vulnerable to climate impacts and must factor in the potential climate risks to their regional investments.
James Allan, Head of Environment at Maplecroft commented: “With global brands investing heavily in vulnerable growth markets to take advantage of the spending power of rising middle class populations, we are seeing increasing business exposure to extreme climate related events on multiple levels, including their operations, supply chains and consumer base. Cyclone Phailin demonstrates the critical need for business to monitor the changing frequency and intensity of climate related events, especially where infrastructure and logistics are weak.”