Financial Aspect Of Climate Risk Management

The world economy is a very complex system; in the system harmful externalities disrupt capital flows and determine economic productivity. Most notable of these externalities is inadvertent global warming. Spending towards research and regulation of climate change at both the national and international level are very important in determining current and future business trends. Economists and scientists worldwide continuously debate the pros and cons of emissions reduction and what consequences can quickly follow. Though many have different views on the issue, all can agree that the immediate and long term effects of climate change have become an economic matter of paramount importance. The sweeping impact from climate change will have important fiscal, financial, and macroeconomic ramifications that influence global commerce standards.

The change in temperature as well as water quality and quantity would definitely have an undesirable impact on agriculture. According to some studies, a rise in temperature due to climate change is predicted to cause decrease in Melbourne’s water supply by 7-35%, which is a huge percentage (Australian Bureau of Statistics 2010). According to the Commissioner Mick Keelty, the head of the Australian police, "We could see a catastrophic decline in the availability of fresh water," (Johnston, T 2007 para. 12). This in fact results in that “Irrigated agriculture in the Murray-Darling Basin would be likely to lose half of its annual output”, and this will lead to decrease in the capability to export food and increase the reliance on food imports (The Garnaut Climate Change Review 2010). Additionally, livestock industries would be another victim to the crisis of climate change as they are very sensitive to the change in the climate. For example, the change in temperature will increase the appearance of diseases and pests among livestock (Australian Bureau of Statistics 2010). As it is mentioned in the Garnaut Climate Change Review, “The productivity of livestock industries will be influenced by the changes in the quantity and quality of available pasture, as well as by the effects of temperature increases

“Scientists have been warning about global warming for decades. It's too late to stop it now, but we can lessen its severity and impacts” - David Suzuki. Global warming, a primary topic of debate in various conversations throughout all levels of government, has been an issue for countless years. In fact, of the 134 years recorded, the 10 warmest years have all occurred “since 2000, with the exception of 1998 “(NASA). Solving a global issue such as this is not as easy as it may seem; however ,The Paris Agreement vows to do just that by setting a plan to limit global warming to well below 2°C in “the first-ever universal, legally binding global climate deal” (Europa). Before signing off on such an agreement one must analyze the many negatives

Climate change affects many factors associated with drought. Beyond direct economic impacts, a drought can threaten drinkable water supplies and entire ecosystems, and can even add to increased food prices.

As of recently, the Paris Climate Talks gathered several of world’s leading nations to discuss the effects and measures needed to be taken to combat the on going threat of

One of the most unique aspects of climate change is its ability to impact every person in every nation across the world. Its omnipotent presence calls for, what I predict will be, the largest global initiative and

Climate change is a real issue that can lead to severe economic losses to the public and private sectors of the U.S., not mentioning human casualties. This report focuses on the general effects of the climate change in the economic sector affecting businesses specifically in the Southeastern region of the U.S. and Texas. Climate change will cost millions of dollars in labor productivity decline, energy demand will significantly increase, and the agricultural sector will suffer considerably losses.

This is a global issue, however the greatest impact would be on Canada, where we are technically advanced in farming. There was a study that showed the relationship between weather related disasters and crop yields from over the globe. The authors of the study outlines how the world’s food supply is vulnerable because of climate change. This creates a strain on the world as there needs to be food grown that would supply the growing population. Navin Ramankutty (the senior author on the study and a professor of global food security and sustainability) states, “The food system is already stressed in many ways.” He also says that with climate change, we are adding more stress on it. Navin and his colleagues at UBC and McGill University took information from a database that had 2 800 weather disasters in 177 countries from 1964 to 2007. The results that they got indicated the impacts on food production from heat waves, and droughts. The study found that recent droughts impact on food production increased by 7-per-cent compared to the droughts from the decades past. This was the effects of climate change. Dr. Ramankutty’s study warns the world food

The Impact that agriculture has on climate change is one of the largest in the world. Climate effects temperature and water availability, weather extremes and flooding and changing CO2 levels in the atmosphere. All of this impacts a shift in crop production patterns across agro ecological zones.

The climate change impacts of greenhouse gases threaten the economic development and environmental quality. These threats indicate that all nations regardless their economic growth should work collaboratively to reduce the emission to a certain level. Hare et al. (2011) argued that “climate change is a collective action problem” thus requires a global coordination from all countries. This indicates that actions from several countries would never be sufficient to address the climate change problem. If a global target to limit warming to 2°C or below is about to achieve (UNFCCC 2010, p.4) a broad range of participation is required (Hare et al., 2011). However, the increasing complexity of negotiation processes is inevitable. Each country will pursue its own interests during the

this, expanding the areas in which certain crops could be grown or moving their ranges north. For example, less frequent freezes could allow citrus to move north from its current range in Florida to other areas of the Southeast. In areas where crops are being grown in their warmest productive temperature ranges already, heat stress or increased disease could reduce yields. However, research on new crop varieties and technological advances could improve yields in spite of reductions due to temperature increases. Do you depend on weather for things? I know i do. I use weather to depend on if i go outside, ride horses, or play in the backyard… Even if you don't notice you do use weather. Well farmers do too. Say a farmer has 10 sheep, 5 pigs, and 12 chickens… he would use the time of year to know how much to feed the animals. Right? Yeah... its right. They use weather for all sorts of things. when it gets cold they have to make sure the animals have the things they need. I would know i have animals myself... Farmers also use the time of year... summer its hot, winter its cold,fall is just wormish, and spring is just right or just

One portion of the Paris Agreement that will be critical to uphold is the $100 billion pledge from developed countries to developing countries to combat the effects of climate change. Specifically, this pledge would provide compensation for the millions of people a year who are displaced from their homes because of natural disasters, the overwhelming majority being from developing countries. The promise will increase to $600 billion by 2025 but does little to counter the estimated $1.7 trillion price tag in economic damage to developing countries in the form of droughts, floods, hurricanes, and agricultural loss. The pledge also does not indicate how funds would be distributed and whether or not

Drought is another factor of climate change that causes severe damages to agriculture and livestock. The effects of drought on agricultural production and livestock holding can be a detrimental issue and result in quality dissatisfaction of products. The agricultural industry can be affected by drought both economically and environmentally. The economical effects of drought on crops and animals can lead to the loss of money and time. When droughts occur farmers lose money because they will have to spend more money earned from their

On December 12 of 2015, 195 countries made history by committing to the first truly global international climate change agreement (Paris Agreement, 2015). This agreement took place in Paris and was adopted under the United Nations Framework Convention on Climate Change (UNFCCC). The outcome of the Paris Conference on Climate Change was described as “revolutionary” (Venezuela) “marvelous act” (China) and as “a tremendous collective achievement” (European Union) that introduced a “new era of global climate governance” (Egypt) while “restoring the global community’s faith of accomplishing things multilaterally” (USA) (Paris Agreement, 2015).

Firstly, climate change has a big impact with world hunger. Climate change may affect food systems in several ways ranging from direct effects on crop production (e.g. changes in rainfall leading to drought or flooding, or warmer or cooler temperatures leading to changes in the length of growing season), to changes in markets, food prices and supply chain infrastructure (Gregory, Ingram & Brklacich, 2005, p.2139). It can trigger a natural disaster like drought and flood, which can have an extreme effect with the problems in the sources of food. In one hand, drought is a common scenario in farm lands in which