Climate change is raising the level of international country risks but offers a golden opportunity for businesses to make a positive step change, report economists from trade credit insurer Atradius.
In a new economic research report on climate change, Atradius warns about the negative impact climate change will have on worldwide economies and public finances. It reveals how financial and economic consequences generated by climate change will raise country risks worldwide, thereby impacting export patterns and international trade. However, Atradius highlights climate change also brings growth opportunities for international companies to develop new technologies and build infrastructure while making a positive contribution to the adaption initiatives of affected countries.
The Atradius report, entitled Climate change: raising country risk but offering business opportunities, analyses the impact of climate change and reveals which countries are likely to be most affected by changing rainfall patterns, higher temperatures, drought, rising sea levels and increasing natural disasters. As well as assessing which countries are most vulnerable to climate change, the Atradius report also determines how prepared they are for the potential impact ahead.
Heat, drought and changing rainfall patterns are a major threat to agriculture-intensive Africa while sea level rises and increasing natural disasters in coastal areas create problems in Asia, the Pacific and the Caribbean. The report demonstrates that though some countries are lagging in readiness, many of them – often helped by multilateral or bilateral partners – are taking measures for both the short and long term, thereby creating new business opportunities.
For instance, businesses active in the development of new technologies for the construction of irrigation and desalination plants have a large playing field in Africa. In the future it seems likely that large companies will put money into climate change projects to meet various political targets, and that means those projects need insurance – ethical insurance from ESG compliant brands.
Bert Burger, principal economist at Atradius, commented: “Global warming is a major threat to humanity, requiring urgent and effective action. As was all too evident with Covid-19, climate change similarly has a two-pronged impact; not only causing personal suffering but also great financial and economic damage. Increasing drought, sea levels and natural disasters affect the incomes of individual citizens and businesses while representing high costs for governments. However, climate change also offers new opportunities for growth.”
For more information and a suite of free economic, payment and country reports, visit the publications pages of the Atradius website https://atradius.co.uk. You can also follow @AtradiusUK on Twitter and AtradiusUK on LinkedIn.