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Climate change: prevention financing needs to catch up with cure spending - South China Morning Post

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Climate change: why faster growth is needed in green financing that helps cities become more resilient to extreme climate | South China Morning Post

Sheep graze on the Guadiana’s dry riverbed as part of the river dried up and gave way to dry land in Villarta de los Montes, in the central-western Spanish region of Extremadura, on August 16, 2022. Extreme weather events such as heat waves and floods have cost some 195,000 lives and nearly 560 billion euros in Europe since 1980, according to the European Environment Agency (EEA), which called to take new measures against the climate change. Photo: AFP

Climate change: why faster growth is needed in green financing that helps cities become more resilient to extreme climate

- Climate change adaptation is an underdeveloped area within blended finance for climate compared to mitigation transactions, but this is changing
- Developing nations will need to invest between US$160 billion and US$340 billion annually by 2030, and more funds are being raised based on the theme of adaptation

Sheep graze on the Guadiana’s dry riverbed as part of the river dried up and gave way to dry land in Villarta de los Montes, in the central-western Spanish region of Extremadura, on August 16, 2022. Extreme weather events such as heat waves and floods have cost some 195,000 lives and nearly 560 billion euros in Europe since 1980, according to the European Environment Agency (EEA), which called to take new measures against the climate change. Photo: AFP

Related Knowledge Center: Climate economics

State of Play

Climate change is now a driver of the world’s economy. The impact is profound:

  • Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
  • Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
  • Investment in carbon capture and storage technologies is increasingly rapidly.
  • Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases. 

On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”

More informationabout Climate economics