Climate risks 'could cost up to 19% of GDP by 2030'

Climate change risks could cost countries up to 19% of their GDP by 2030, a consortium including the European Commission, consultants McKinsey and insurers Swiss Re warned in a report on Monday. Developing countries would sustain the largest losses.

But 40-68% of the predicted economic losses could be avoided by implementing cost- effective climate adaptation measures such as improved drainage, sea barriers and improved building regulations, the authors say. And most measures would cost much less than avoided losses.

The report analyses vulnerable locations in eight countries: The UK, the US, India, Guyana, Mali, China, Samoa, and Tanzania. Total climate-related losses in Hull, one of Britain's most vulnerable areas, could amount to E68.4m by 2030, or 1% of local GDP, according to the report. Costs could total 19% of GDP in the case of Georgetown in Guyana.

Substantial upfront financing is needed, the authors say. But adaptation policies are in many cases also effective measures to strengthen economic growth, particularly in poor nations, they point out. The European Commission wants to give developing countries up to E15bn in 2020 http://www.endseurope.com/22119?referrer=bulletin&DCMP=EMC-ENDS-EUROPE-DAILY to help them cut their emissions and adapt to climate change.

Follow-up: Swiss Re press release

http://www.swissre.com/pws/media%20centre/news/news_releases_2009/eca_pr.html

and report

http://www.swissre.com/resources/387fd3804f928069929e92b3151d9332-ECA_Shaping_Climate_Resilent_Development.pdf.

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