User login

Economists label climate change biggest threat to global economy

Economists label climate change biggest threat to global economy

18th January 2016
Climate change has been identified as the biggest potential threat to the global economy in 2016, seen as more severe than weapons of mass destruction, cyber-crimes and mass involuntary migration, according to experts surveyed by the World Economic Forum (WEF). The 2016 Global Risks report - produced by WEF in partnership with risk specialists Marsh & McLennan and Zurich Insurance Group – provides an in-depth survey of 750 expert economists.  Cecilia Reyes, Zurich’s chief risk officer, said: “Climate change is exacerbating more risks than ever before in terms of water crises, food shortages, constrained economic growth, weaker societal cohesion and increased security risks “Meanwhile, geopolitical instability is exposing businesses to cancelled projects, revoked licences, interrupted production, damaged assets and restricted movement of funds across borders. These political conflicts are in turn making the challenge of climate change all the more insurmountable – reducing the potential for political cooperation, as well as diverting resource, innovation and time away from climate change resilience and prevention. The survey asked respondents to consider and rank 29 global risks across societal, technological, economic, environmental and geopolitical categories over a 10 year horizon to establish the likelihood and impact of each. After appearing in the top five for the last three editions the failure of climate change mitigation and adaptation has jumped to number one in the list, despite the recent legally-binding deal established in Paris. Climate change issues were seen as more important than those of WMDs, which ranked 2nd, water crises which ranked 3rd and involuntary migration and sever energy price shock which rounded out the top five. Read more – Edie.netRead more - WEF