September 11, 2019 09:30
Photo : Freepik
Adaptation to climate change would result in substantial economic returns, according to the world Commission on adaptation in its most recent report, Adapt Now : A Global Call for Leadership on Climate Resilience.
According to the report, three imperatives must guide the acceleration of the adaptation to climate change : the human imperative, environmental imperative and the economic imperative. The authors argue that investing in climate resilience ” in our strongest economic interest “.
In fact, it is estimated that the overall yield on investments improved resilience would be ” very high “, with ratios of benefits and costs between 2 : 1 and 10 : 1.
“More specifically, our research shows that investing $ 1.8 trillion globally in five sectors between 2020 and 2030 could generate the 7.1 trillion dollars in total net benefits “, add the authors of the report.
A “triple dividend”
These figures are based on investment in five specific areas, namely in the systems of early warnings, in the infrastructure resilient to the climate, in the improvement of the agricultural production of arid lands, in protecting the world’s mangroves and in the efforts to make water resources more resilient.
The world Commission on adaptation stresses that these investments would lead to multiple benefits, what she calls a ” triple dividend “. This includes the avoided losses related both to the lives that to the cost savings, economic benefits and the environmental and social benefits.
A financial revolution needed
The report also argues that a financial revolution is needed to speed up the adaptation to climate change. “Even if the imperative for action is clear, the flow of money is not fast enough for current needs “, note the authors.
The public and private sectors are essential to achieve this goal, says the commission. She reminds us that the private sector will increase the investment of its own accord, but that it must complement the public sector ” by sharing the costs and benefits of investments in adaptation, such as infrastructure, financing, pension and insurance “.
The BAC welcomes the report
The insurance Bureau of Canada (IBC) welcomed the report, calling it ” appeals unequivocally launched to all nations to adapt now, so bold and fair.” The organization recalls that some of the conclusions drawn by the commission are similar to those of the Fight against the rising cost of floods in Canada : The natural infrastructure is an option under-used, published last fall. In the following, the BAC ” urges communities to consider the natural infrastructure to reduce their risk of flood and to resolve the issue that is the economic risk associated with climate change “.
“The TRAY adds its voice to this urgent call for adaptation launched by the world Commission on the adaptation, said Don Forgeron, president and ceo of the TRAY. The BAC and its members are advocating strongly for an increase in funding of measures to increase climate resilience on the part of all levels of government and the private sector. The industry of property and casualty insurance continues to see the devastating effects of this new era marked by a changing climate and unpredictable “.