Latest report suggests that the U.S. may face damages worth hundreds of billions of dollars by 2100 due to climate changes.
Natural disasters such as floods, hurricanes, earthquakes and more are unpredictable. Many scientists hold climate change responsible for many of the natural disasters that damage property as well as human lives.
A report commissioned by a group of well-known politicians and financial analysts suggests that the damage caused by climate change may soar to billions of dollars by 2100. The report is called "Risky Business" and is released by Michael Bloomberg, former New York City Mayor, Henry Paulson, former Secretary of the Treasury and Goldman Sachs' Tom Steyer, environmentalist.
Climatologist Michael Oppenheimer of Princeton University says that the report "is the most detailed ever of the potential economic effects of climate change on the U.S." According to the report, businesses should consider climate change as one of the potential threats to their business.
The report suggests that by 2050, between $66 billion to $106 billion worth of coastal property is likely to go below the sea level. The report estimates that the annual loss due to rising water level along the Eastern Seaboard and Gulf of Mexico is expected to be between $42 billion to $108 billion. There are some chances that losses due to climate change may reach as high as $700 billion by 2100.
The Risky Business report highlights that extreme heat, especially in the upper Midwest, Southeast and Southwest, may reduce the productivity of labor. People working outdoors, such as construction workers, will not be able to work for longer periods of time. The report also says that some regions may also become unsuitable for outdoor activity.
Currently, air conditioning is not necessary for humans to survive. However, with the increase in the global temperature, demand for electricity will soar as air conditioning will become a requirement for survival. High electric consumption means that the government will have to take steps to build power plants with higher power generation capacity.
Construction costs of the power plants will in turn be added to the utility bills of consumers. By 2050, businesses as well as people may have to pay around $8.5 billion more every year.
The report does not mention changes in policies; however, the report suggests that business leaders and investors should understand the severity of climate change and "rise to the challenge of addressing climate change."
