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Climate Change Adaptation Could Cost Developing Countries US$100 Billion
The Economics of Adaptation to Climate Change (EACC) study, funded by the governments of the Netherlands, Switzerland, and the United Kingdom, has been released at the latest round of UN climate talks in Bangkok.
The figures assume that temperatures rise by 2C (3.6F) in the next 40 years.
How to finance adaptation, and how much money will be available, is a major theme in the talks that are supposed to produce a new global treaty this year.
The major costs would come from improving coastal protection and protecting transport links, the bank says.
Faced with the prospect of huge additional infrastructure costs, as well as drought, disease and dramatic reductions in agricultural productivity, developing countries need to be prepared for the potential consequences of unchecked climate change. In this respect, access to necessary financing will be critical, said Katherine Sierra, World Bank Vice President for Sustainable Development.
The report released Wednesday finds that the highest costs will be borne by the East Asia and Pacific Region, followed closely by Latin America and the Caribbean, and Sub-Saharan Africa. The drier scenario requires lower adaptation costs in total in all regions, except South Asia.
The EACC study provides a range of estimates for a world in which decision makers have perfect foresight, says Sergio Margulis. In the real world where decision makers hedge against a range of outcomes, the actual expenditures are potentially higher than this.
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