Impact on economic growth due to climate change

A recent report predicts significant global income loss by 2050 due to climate change, with disproportionate impacts on vulnerable nations like India

Impacts of Climate Change on Global Economies:

• Predicted Losses: The report forecasts a 19% decrease in average global incomes by 2050, leading to a 17% decline in global GDP, with severe damages expected in South Asian and African countries.
• Factors Contributing to Losses: The estimated loss accounts for temperature increases alone, with an additional 50% increase when damages from extreme weather events are included.
• Cost-Benefit Analysis: The projected losses far exceed the cost of reducing carbon emissions to limit temperature rise to below 2°C, emphasizing the urgency of climate action.

Challenges and Risks for India:

• Vulnerability to Climate Extremes: India ranks as the seventh-most vulnerable country to climate extremes while being the third-largest emitter of greenhouse gases, according to the IPCC's Sixth Assessment Report.
• Projected Climate Risks: The report highlights risks such as intensified extreme rainfall, increased heatwaves, and cyclonic storms, posing significant challenges for vulnerable communities with limited adaptive capacities.
• Economic Implications: Climate risks not only incur physical and human costs but also disrupt investments in critical sectors like housing and transport, exacerbating economic losses and hindering India's developmental goals.

Mains Question:

Evaluate the socio-economic impacts of climate change on vulnerable nations like India, and discuss policy measures required to mitigate these risks and promote sustainable development in the face of climate variability.