Forum Views - January 2024

Welcome to interactive presentation, created with Publuu. Enjoy the reading!

FORUM VIEWS - JANUARY 2024

The Impact of Climate Change on the Global Economy

The current state of climate change poses significant

challenges to the global economy, with repercussions

affecting various sectors. The rising frequency of

extreme weather events, unpredictable food production,

and the depletion of natural capital assets all contribute

to the escalating impact on economic stability, at

the same time that we are facing an increasingly uncertain

geopolitical situation that is impacting supply chains

and food production across the globe as trading

relationships are reshaped to align with political

alliances.

Against that backdrop, the climate discussions at the 28th

Conference of the Parties (COP 28) in Dubai in December

were always going to be difficult, but while many will have

been disappointed by the soft language used in the final

communiques and the less ambitious targets agreed upon, it

is clear that the world’s nations are taking the climate crisis

seriously and that there is a growing sense of urgency to take

meaningful action.

In addition to this sense of urgency, there is now a clear

acknowledgement that the nature and climate crises are

completely interlinked and that we cannot solve one without

solving the other.

This is a welcome shift. The International Energy Agency's

recent 'Breakthrough Agenda Report' highlighted a

concerning trend - emissions are on the rise, and nature-

altering activities persist. This dual threat exacerbates the

carbon pollution problem while eroding the very foundations

of our economic resilience, such as vital rainforests.

On top of that, there is now a growing focus on food and

health as two key areas where the nature and climate crises

have significant impact.

INVESTING FOR 2050. NAVIGATING

THE CLIMATE AND NATURE CRISES:

ECONOMIC AND FINANCIAL PERSPECTIVES

Peter Elwin

Director of Fixed Income

Head of Food & Land Use

Programme

Planet Tracker

Businesses and finance face unprecedented challenges in

this shifting landscape. The destabilization of the once-

predictable 'Holocene' period demands a reevaluation of

existing models. This unpredictability escalates the cost of

risk across insurance, debt finance, and equity capital.

The economic toll of extreme weather events is staggering. In

2022 alone, climate-related disasters caused damages

exceeding USD 3 trillion, with estimates likely underreporting

the true cost, focusing mainly on insurance losses rather than

encompassing broader economic and human losses.

Resource overuse and environmental harm compound the

issue. Fossil fuel extraction and use remains a primary

contributor to climate change, further depleting nature's

resilience and intensifying the risks faced by humanity.

The International Energy Agency's

recent 'Breakthrough Agenda

Report' highlighted a concerning

trend - emissions are on the rise,

and nature-altering activities

p e r s i s t . T h i s d u a l t h r e a t

exacerbates the carbon pollution

problem while eroding the very

foundations of our economic

resilience, such as vital rainforests.

(United Kingdom)

Global Insights

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52