HOUR changing of the climate it’s already here, and it’s costly, affecting our entire lives, but also economy. The Bank of Greece estimates that the country’s GDP could fall by up to 6% per annum by 2100, or cumulatively to 701 billion euros, if climate change mitigation and adaptation measures are not taken.

Data refer to study, by subject “Adaptation to climate change: challenges and prospects for the Greek economy”who prepared it Institute of Economic and Industrial Researchwith the support of the Bank of Greece, where it was presented yesterday.

If appropriate measures are taken, costs can be contained, but they will remain high. Adaptation could cost the Greek economy up to 67 billion euros by 2100, reducing the cost of damage from 701 billion euros to 510 billion euros, according to the study.

Infrastructure improvement

The study highlights the importance of climate change adaptation measures, in other words, protection against its effects, which need to be promoted along with mitigation measures. Along with measures to reduce greenhouse gas emissions, investment in infrastructure such as dams, as well as better home insulation and crop change, should be encouraged. Of the $632 billion invested globally in 2020 to combat climate change, 90% is for mitigation and only 7.2% for adaptation.

“Climate change is perhaps the biggest threat to the sustainability of our society,” warned Yannis SturnarasGovernor of the Bank of Greece, who has systematically dealt with this issue since 2011 by establishing an interdisciplinary committee to study the effects of climate change (EMECA).

A study prepared by IOBE proposes tax breaks for companies that invest in green stocks.

However, the reflexes of the Greek state in this matter are also slow. Thus, only 5 out of 13 regional plans provided for by the National Strategy for Adaptation to Climate Change in 2016 have been approved so far. And this despite the fact that in 2016 the revision of the National Strategy is scheduled.

The study documents the dramatic effects of climate change on every economic activity: disruption of agricultural production, increased animal mortality, faster transmission of pathogens, disruption of food industry supply chains, destruction of equipment, and disruption of raw material distribution networks in the manufacturing industry. .

“Climate change cannot be a footnote in economic policy,” commented IOBE CEO Nikos Vettasarguing that climate change adaptation can be a development opportunity, accelerating the use of national and European resources and creating added value and jobs.

“There will be no turning back”

The general secretary of the Academy of Athens, the national spokesman for climate change, has rung the bell for the risk of a sharp deterioration after the decade of 2050. Christ Zerefos, saying that “when extreme events become our daily routine, there will be no turning back to the normal climate we knew.” After all, he pointed out that the cost of extreme event insurance increased 100-fold from the 1950s to 2010, when it reached $1 trillion. dollars.

“The damage has been done, we need to focus on adaptation,” said Professor Anastasios Xepapadeas, arguing that appropriate investments will protect against damage and become an engine of growth.

The private sector, whose participation is currently limited, has a role to play in adapting to climate change, according to a study presented by Ilyas Demyan, chair of the IOBE Department of Environmental Economics. Green bonds and bonds with sustainability clauses issued by businesses and governments reached $863 billion in 2022. The study proposes to provide tax incentives to businesses that invest in adaptation activities.

Numbers

67 billion euros According to a study prepared by IOBE, investment in climate change adaptation before 2100 could cost the Greek economy.

$863 billion green bonds and sustainability bonds issued by businesses and governments in 2022.

5 out of 13 the regional plans foreseen by the National Climate Change Adaptation Strategy for 2016 have already been approved.