The report from the Economics of Climate Adaptation Working Group indicates that climate risks could cost nations up to 19% of their GDP by 2030, with developing countries most vulnerable. The report concludes, however, that cost effective adaptation measures already exist that can prevent between 40 and 68 percent of the expected economic loss with even higher levels of prevention possible in highly target geographies.
The ECA report found that, in order to foster climate-resilient development, one needs to apply a pre-emptive approach to manage total climate risk.
- 1. Despite much uncertainty, it is possible to provide a basis for decision-making, even in developing countries where historical climate data may be limited.
- 2. Market-based insurance solutions can contribute significantly and efficiently to locally adapt to a changing climate.
- 3. The methodology outlined in the report (and illustrated by the eight case studies) can be applied to other countries or regions to help develop concrete data for political decision-making on adaptation strategies and resource allocation.
Source: Published by the Economics of Climate Adaptation (ECA) Working Group (2009)