top of page
Writer's pictureAjani Stella

Economic Update: New Report Calls for Climate Policy

Updated: Jun 1, 2020

A new OECD report shows the effects of climate change on the economy and calls for climate policy at a governmental level.

The OECD calls for climate policy to trigger business investment. IMG source: Sustainable Business Network

According to a new Organization for Economic Cooperation and Development (OECD) report, the lack of clear climate policy is stunting business investment in climate mitigation and adaption.


"Without a clear sense of direction on carbon prices, standards and regulations, and without necessary public investment, businesses will put off investment decisions, with dire consequences"

The OECD reports.


The report also emphasizes the effects of extreme weather on the economy. Extreme weather disrupts the economic activity of a company by wreaking lasting damage on economic capital, resources, and land. This costs a nation and the private sector billions of dollars a year to fix. Furthermore, the migration of immigrants into a nation is disrupted by extreme weather events, disrupting a nation's economy. These effects are increased by insufficient climate policy.


The OECD report recommends more clarity on policy, forecasting that would lead to an acceleration of investment in the private sector. They also suggest a creation of national funds to increase public investment in climate change.



Sources

Walker, Andrew. "New warning on global economic slowdown." BBC News. 21 Nov. 2019. https://www.bbc.com/news/business-50502021


Chappell, Carmin. "Natural disasters cost $91 billion in 2018, according to federal report." CNBC News. 6 Feb. 2019. https://www.cnbc.com/2019/02/06/natural-disasters-cost-91-billion-in-2018-federal-report.html

Comments


You must be logged in to use this feature.

bottom of page