Extreme weather events and degraded ecosystems, exacerbated by climate change, are causing disruptions in global supply chains. These disruptions pose risks such as shortages of essential goods like food and medicine, interrupted production, and higher prices. The Nordic region is particularly vulnerable to these impacts, with potential consequences for food security, access to healthcare, and the overall continuity of business operations.
In Europe, the risks are even more significant due to its heavy dependence on imports and the concentration of critical production in regions susceptible to climate change. The European Union relies heavily on imports for agricultural products and pharmaceutical ingredients, leaving vital sectors vulnerable to the unpredictability of climate-related events.
A recent study by UCL researchers has shown that the global GDP loss from climate change could increase significantly when considering the indirect impacts on global supply chains. This study examines indirect economic losses from climate change for the first time and projects a potential net economic loss between USD 3.75 trillion and 24.7 trillion by 2060 when adjusted for 2020 dollars. These findings highlight the need for urgent action to address climate change and its far-reaching effects on global economies.
