Atradius climate change report
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 (www.atradius.co.uk).
In a new economic research report on climate change, entitled Climate change: raising country risk but offering business opportunities (https://atradius.co.uk/reports/economic-research-climate-change-impact-on-country-risk.html), Atradius 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.
“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,” comments Bert Burger, Principle Economist at Atradius.
“However, climate change also offers new opportunities for growth. Development of new technologies and investments in initiatives such as irrigation, desalination plants and energy transition creates a bright side to climate change. While climate change is first and foremost a threat, international companies can benefit from the opportunities it creates while making a positive contribution to the climate adaption initiatives of these countries, driving economic growth, creating jobs and making a real difference to the planet.”
The Atradius 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. Meanwhile, the great untapped potential in Africa, the Middle East and South America offers opportunities in renewable energy as these markets lack the required technical knowledge and skills for development.