Developing countries that depend on agriculture are more vulnerable to climate risks

Developing countries that depend on agriculture are more vulnerable to climate risks
Developing countries that depend on agriculture are more vulnerable to climate risks
Anonim

Climate change "can both improve and worsen the performance of the food system," according to the latest report on climate risks by the McKinsey Global Institute. In some regions, yields may increase, while in others, environmental conditions may lead to the loss of some crops, CNBC reported.

Countries such as Canada, Russia and parts of northern Europe may benefit slightly from changing climatic conditions, as higher temperatures could lead to higher agricultural yields, the report said.

McKinsey Global Institute director Jonathan Wetzel told CNBC that adaptation is necessary to manage risk. However, he said, it could be costly for the affected regions.

“Mobilizing funding to finance adaptation, especially in developing countries, is also critical,” and this may require broader public-private partnerships, Wetzel noted.

To tackle the impacts of climate change, "developing country governments are increasingly turning to insurance / reinsurance companies and other capital markets to increase their resilience to natural disasters, as well as to provide guarantees to institutions that are considering investing in a particular region." he added.

According to McKinsey, since the 1880s. the average global temperature has risen by about 1.1 degrees Celsius with significant regional fluctuations. McKinsey found that countries and regions with lower GDP per capita levels tend to be more exposed to the risks of climate change.

Countries that derive a significant share of their GDP from agriculture may be at greatest risk, according to the National Bureau of Economic Research (US), as extreme heat and rainfall cause crop losses and delay field work.

A 2019 National Bureau of Economic Research study found that a 0.04 degree Celsius increase in global average temperature per year would lead to a 7.22% decline in global real GDP per capita by 2100.

As Vesti. Ekonomika reported, more than 11,000 scientists from around the world warned last year that the planet was facing a climate emergency.

"The climate crisis is closely related to the overconsumption of wealthy lifestyles. The richest countries are primarily responsible for the historical greenhouse gas emissions and tend to have the highest per capita emissions," the scientists noted in their appeal published in the journal BioScience.

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