Climate Change’s $1.5 Trillion Problem
According to data from the World Economic Forum, climate change is projected to cause 14.5 million excess deaths between now and 2050. The loss of workers across four major segments of the world’s employment pool, caused by this, could cost $1.5 trillion between 2025 and 2050. That number, spread over the time period, is actually very modest. It is the equivalent of the one-year GDP of Mexico or Turkey.
The industry sectors that comprise the $1.5 trillion market are across food and agriculture, the built environment, and health and healthcare. Agriculture workers are the most likely to face severe challenges. Most of the construction workers affected work in large cities. Many of these are located in areas where, for part of the year, temperatures can exceed 100 degrees F for several days, or even several months.
Most of the insurance analyzed is health insurance. The assumption is that heat and other climate-driven dangers will raise the cost of healthcare.
The authors point out that these catastrophes cannot effectively be combated industry by industry. These sectors, along with others, must work together. “While institutions in each sector can act, no sector can tackle the climate-health challenge alone.”
Can The World Cooperate?
The solutions suggested are similar to those found in several studies on the global economy and climate. They require considerable cooperation among industries and nations. Among these are risk management, addressing the worst climate-related health problems, coordinating efforts among companies and industries, and avoiding adaptation programs that may be counterproductive.
The reality is that the kind of systems suggested to help curb the problems involved a level of cooperation that never existed in the past. And, there may not be enough incentive for a capitalistic system to make the investments of time or money.
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