FAQ About Green Economy

Not adopting a Green Economy and failing to address environmental challenges can lead to a range of significant economic risks that have far-reaching consequences for countries, businesses, and societies. These risks stem from the impacts of climate change, resource depletion, environmental degradation, and social disruptions. Some of the potential economic risks include:

Climate-Related Costs:

• Increasing frequency and intensity of extreme weather events (e.g., hurricanes, floods, wildfires) can result in costly infrastructure damage, property loss, and increased insurance claims.

Resource Scarcity and Price Volatility:

• Depletion of essential resources such as water, minerals, and fossil fuels can lead to supply shortages and price volatility, affecting industries reliant on these resources.

Energy Price Shocks:

• Dependence on fossil fuels makes economies vulnerable to energy price shocks caused by geopolitical events, supply disruptions, and shifts in global oil markets.

Healthcare Costs:

• Poor air quality, water contamination, and climate-related health impacts can lead to increased healthcare costs and decreased workforce productivity.

Loss of Ecosystem Services:

• Degradation of ecosystems, such as deforestation and soil degradation, can disrupt essential services like pollination, water purification, and carbon sequestration, affecting industries like agriculture and tourism.

Infrastructure Vulnerability:

• Rising sea levels and increased flooding can threaten critical infrastructure such as roads, bridges, ports, and airports, requiring costly repairs and adaptations.

Business Disruption:

• Businesses not prepared for climate-related risks could face supply chain disruptions, reduced productivity, and increased costs for operations and insurance.

Financial Instability:

• Investments in carbon-intensive assets, known as "stranded assets," could lose value as global efforts to address climate change accelerate and demand for fossil fuels declines.