Even with the constant warnings about climate change, people still often ignore the significant impacts it has on the economy. It will prove to be a massive mistake, with new research showing that this climate change can lead to dire economic consequences amounting to $139 billion. According to a recent study by the GDP entitled Aquanomics: The economics of water risk and future resilience, the loss is evident if floods in Canada and storms continue for the next 30 years.
GDP Loss Annually
The results of this new research equate to a loss of 0.2% annually. It is the first time the study bases its finding on the economic impact of water risk calculated at a GDP and sector level. The research combines insurance data and econometric modelling to show how much impact water risk will increase in the future. The study focuses on seven countries, including Australia, the Philippines, China, UAE, and the UK, other than Canada.
While Canada faces lesser risk because of its large land mass, it does not eliminate the fact that the threat exists. Flooding alone can cost the Canadian economy over $40 billion in the years leading up to 2050.
Event Types That Show Direct Losses
The study shows that different events affect the total loss of GDP. These events will contribute to the estimated $139 billion in losses.
- Flooding - $40 billion
- Storms- $34 billion
- Drought - $14 billion
Effects Of Storm Fiona
Talking about the recent storm that hit Canada can help show how much storms impact the country's economic sector. Storms are far from uncommon in the country, but Fiona hit a vast area, making it a historic storm.
While climate change may not be the leading cause of the storm's strength or behaviour, strong evidence suggests that the storms are getting worse and more potent. Storm Fiona left hundreds of thousands without power, and these power outages were the least of their problems. The region also suffered flaky mobile services, road closures, and other chaotic scenes.
In the coastal areas, like Halifax, 11 boats sunk, and another four were grounded. It is just one of the disasters that come with solid storms that affect a large portion of the economy.
The Sectors Most Affected
Multiple sectors will feel the impact of storms and climate change. The five critical economic sectors include agriculture, energy and utilities, banking and insurance, manufacturing and distribution, and fast-moving consumer goods and retail services.
The GDP study found that the manufacturing and distribution sectors are the most hit. The total losses would amount to $64 billion by the year 2050. At the same time, the most water-intensive industries will lose around $4 billion by the same year.
While it can be challenging to prevent and stop floods and storms from happening, preparing communities and the numerous sectors for such emergencies can help. Don Holland, Canada water market leader at GHD, has called for a group effort in training and dealing with the economic changes saying, "It needs to be a coordinated effort because water doesn't care about municipal boundaries. We can't do things in isolation. We need to work together."
Regarding society's engineering, contractors and builders can start by providing plans and systems for building structures that can help the community bounce back quicker after catastrophes.
How You Can Do Your Part
If you are part of the construction or building sectors, you can start by introducing greener and more environmentally friendly structures. While there is no proof that global warming has anything to do with the strength of storms, having sustainable buildings will help lessen the possible losses of these companies. Also, consider building techniques to help reduce property damage in these sectors.
Read more about green building practices you should consider today to get started on a greener, more sustainable approach to lessen greenhouse gas emissions.
How We Can Help!
While storms are fortuitous events, there are multiple ways you can lessen the impact they have on your company or business. Consider materials and products that are LEED certified in your following projects with the help of Best Access Doors Canada! Know more about the products we have to offer by giving us a call or visiting our website. Shop for access doors and panels that meet LEED certification, or request a quote today!