Countries and communities around the world are already experiencing stepped-up climate change impacts – including droughts, floods, more intense and frequent natural disasters, and sea-level rise – and the most vulnerable are being hit the hardest.
- Under the Paris Agreement, the world committed to limiting the rise in global temperatures to well below 2 degrees Celsius above pre-industrial levels by the end of the century and "endeavor to limit" them even more to 1.5C.
- Global temperatures have already risen 1.2 degrees C above pre-industrial levels. Climate change increases volatility and threatens efforts to end poverty.
- Without urgent action to reduce vulnerability, provide access to basic services, and build resilience, climate change impacts could push an additional 100 million people into poverty by 2030.
- The impact of extreme natural disasters is equivalent to a $520 billion loss in annual consumption and forces some 26 million people into poverty each year.
- Climate change is already having real and measurable impacts on human health, with impacts expected to grow. Co-pollutants associated with carbon emissions are already responsible for more than 7 million premature deaths each year, while direct costs to health are estimated to be between US$2-4 billion/year by 2030.
- Undernutrition is identified as the largest health impact of climate change in the 21st century. A 6 percent decline in global wheat yields and 10 percent decline in rice yields is expected for each additional 1°C rise in global temperature, with substantial impacts on undernutrition and stunting in food insecure or poor regions. An additional 7.5 million children are expected to be stunted by 2030, 4 million of whom are expected to be affected by severe stunting, increasing to 10 million children by 2050.
Climate change is becoming a potent driver of internal migration.
- By 2050, according to the World Bank’s recently launched “Groundswell: Preparing for Internal Climate Migration” report, more than 143 million people in three regions, Sub-Saharan Africa, Latin America, and South Asia, could be forced to move within their own countries to escape the slow-onset impacts of climate change, such as water stress and crop failure.
- With concerted action, including global efforts to cut greenhouse gas emissions and robust development planning at the country level – this 143m number could be dramatically reduced, by as much as 80 percent, or 100 million people.
The financing required for an orderly transition to a low carbon,
- Over the next 15 years, the world will require about $90 trillion in new infrastructure – most of it in developing and middle-income countries. Making the right choices in favor of infrastructure that is climate resilient and locks in a low carbon development pathway is critical and urgent. Action now will avoid huge costs later.
- The IEA estimates that limiting the rise in global temperature to below 2C by the end of the century will require an average of $3.5 trillion a year in energy sector investments until 2050.
Climate action is a vast opportunity for sustainable global development, with investment potential in the trillions of dollars and the ability to drive innovation and create green industries and new jobs.
- The IFC estimates that the NDCs of 21 emerging market economies alone represent $23 trillion in investment opportunities.
- According to IRENA, the global energy transition could contribute $19 trillion in economic gains by 2050.
Achieving the goals of the Paris Agreement will require coordinated global action at an unprecedented scale and speed.
- The Sustainable Development Goals (SDGs) will only be achieved if tackled along with climate change. The world will soon need to feed 9 billion people while reducing emissions, provide electricity access to 1.1 billion people while transitioning from fossil fuels, and prepare for 2 billion new urban dwellers while reducing the carbon footprint of cities and improving urban resilience.
Policy action, including carbon pricing, can help create incentives for change.
- Carbon pricing represents a simple, fair and efficient policy option to address climate change. It can also deliver additional benefits, reducing air pollution and congestion while avoiding the increased costs of remedial measures associated with high-carbon growth paths.
- For businesses, carbon pricing enables them to manage risks, plan their low-carbon investments, and drive innovation. According to the latest State and Trends report, eight new carbon pricing initiatives have been launched and two more initiatives are scheduled for implementation in 2018. This brings the total number of carbon pricing initiatives implemented or scheduled for implementation to 47. Overall, 67 jurisdictions—representing about half of the global economy and more than a quarter of global GHG emissions—are putting a price on carbon.
- However, to shift investment at scale, carbon pricing coverage must expand, and prices must be stronger. Currently, 85 percent of all forms of carbon pricing sets the price at less than $10 per ton of CO2 equivalent.
- The High-Level Commission on Carbon Prices, led by Joseph Stiglitz and Nicholas Stern, concluded in May 2017 that a carbon price of $40-$80 per ton of CO2 equivalent by 2020, increasing to $50-$100 per ton by 2030, would allow for the achievement of the core goal of the Paris Agreement – keeping the global temperature rise to below 2C.
Last Updated: Jun 21, 2018