Investing $1.2b to curb temperature rise would save $11.6b losses: Study
Researchers found that the agriculture sector will suffer the biggest impact of global climate change
Investing $1.2 billion in Bangladesh by 2030 to limit temperature rise to 1.5 degrees Celsius to combat the effects of global climate change could save the country potential losses worth $11.6 billion, says a study by the Standard Chartered Bank.
Investing $30.4 billion in 10 countries, including India, China, Indonesia, the UAE, Nigeria, Bangladesh – which are likely to suffer the most from the effects of global warming – can prevent $376.6 billion of potential losses caused by climate change, according to the research on "Adaptation Economy", revealed at a roundtable discussion on "Climate Adaptation: Opportunities for Bangladesh in Development of Agro-based Industries" in a Dhaka hotel yesterday.
Researchers found that the agriculture sector will suffer the biggest impact of global climate change. So $13 billion of the $30.4 billion investment proposed for the 10 most vulnerable countries should be allocated for this sector.
They also recommended $11.7 billion investment in the industry sector, and $5.7 billion in the service sector, said Bitopi Das Chowdhury, head of corporate affairs, brand and marketing of the Standard Chartered Bank, while presenting the research findings.
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In the roundtable event, the panellists said the private and public sectors should formulate and implement policies together to ensure food security in the future.
Agriculture Minister Dr Muhammad Abdur Razzaque said, "The country's agriculture sector is always at risk whether the climate changes or not. We have to grow crops by overcoming various adverse environmental situations.
"In order to make food security sustainable in the future, it is necessary to increase productivity, reduce production costs, and develop crop varieties that can be cultivated in adverse environments."
He also said, "We cannot cultivate crops in a large area due to the increase in sea level and the effect of salinity in coastal regions. Agricultural scientists have to work to develop technologies for farming in these areas."
"Setting up small processing factories close to the production areas will contribute to building the capacity of a large number of small farmers, promote local agro-food value chain development, and contribute to lowering the global carbon footprint," said the minister.
Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh, emphasised on the expansion of a sustainable agro-processing industry to keep the agriculture sector as well as the economy vibrant in a changing climate.
He said, "Bangladesh is responsible for only 0.4% of global greenhouse gas emission, which is insignificant compared to other mega industrial economies, but it is placed high on the list of countries most vulnerable to climate change. Given the current trajectory, the rapidly changing climate will trigger around 1% to 2% annual GDP losses for the country."
Standard Chartered Bank Chief Executive Officer Naser Ezaz Bijoy said it is absolutely critical for the world to come together to contain the temperature increase to 1.5 degrees Celsius, and adopt the "net zero transition plan" to address the impact of climate change. These mitigation and adaptation measures address the causes and impacts of climate change respectively.
Dr FH Ansarey, president of ACI's agribusiness division, said high temperatures will reduce crop yields, and weaken the immune system of fish and shrimp. Moreover, changes in temperature in daytime and nighttime can affect rice production, and increase mortality in the poultry sector.
"The overall impact of temperature change can reduce productivity and lead to food shortages, driving up food prices and threatening food security. The government should fund research in both the public and private sectors to address this climate vulnerability," he added.
AK Azad, vice-president of the International Chamber of Commerce Bangladesh, said, "Our water level is going down constantly. Indian factories do not dump any wastewater as they recycle it. But we are not able to do it yet. We need to do this quickly, because there is a possibility of a major water crisis in the coming days."
The International Chamber of Commerce Bangladesh, the Food and Agriculture Organisation of the United Nations, the Standard Chartered Bank organised the programme jointly.
