A study by Standard Chartered has shown that Nigeria can prevent climate damage and about $19.9 billion in GDP loss to its economy, by investing $1.5 billion in climate adaptation.
The study, ‘The Adaptation Economy’, which examines the need for climate adaptation investment in ten markets, including Nigeria, China, India, Bangladesh, and Pakistan, found that if a minimum of $30 billion is not invested in climate adaptation by 2030, these markets could suffer projected damages and lost GDP growth of $377 billion.
The estimate, according to the report, was predicated on global efforts to keep temperature increases to 1.5°C in line with the Paris Agreement.
The new study said lack of climate adaptation investment could cost emerging markets hundreds of billions by 2030.
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The country that will benefit the most from adaptation investment is India, whose market would need an estimated $11 billion to prevent climate damages and $135.5 billion in lost GDP under a 1.5°C warming scenario.
Among the other 10 emerging markets, China will benefit economically by $111.9 billion by investing $8.1 billion, Indonesia will benefit economically by $39 billion with a minimum investment of $4 billion, and the United Arab Emirates (UAE) will benefit economically by $31.5 billion by investing $2.7 billion.
The study said that emerging markets could lose hundreds of billions of dollars in GDP growth this decade and suffer climate damage costs if they do not invest the bare minimum required to withstand expected climate harm. It added that under a 3.5°C scenario, the anticipated minimum investment needed more than doubles to $62 billion, and the risk of losses increases sharply in the absence of such investment.
According to the study, examples of climate adaptation projects include developing drought-resistant crops, coastal barrier protection strategies for areas at risk of flooding, and early-warning systems for impending natural catastrophes.
Story was adapted from The Guardian.
