A recent United Nations report on trade and development says the world needs not only a transformative approach to climate adaptation, but to do so with large-scale public investment programs to boost growth and job creation. It is necessary to deal with current and future threats backed by policies.
In this report, released ahead of the UN’s COP26 conference, the second part of UNCTAD’s Trade and Development Report 2021 also calls for a transformative approach to climate adaptation with advanced economies ensuring that they do not compromise on their development goals. so that a changing climate multilateral institutions can help developing countries manage pressure.
In this context, UNCTAD Secretary-General Rebecca Grinspan said that an approach that is “proactive and strategic rather than merely retrospective” is needed.
Focusing on trade and development, this Development Report 2021 provides an updated analysis of economic trends and policy issues of international concern and provides advice for more inclusive policy interventions.
This highlights that while much of the agenda-setting focus is on climate mitigation, this approach is ‘short-sighted’ and ‘increasing in price’. UNCTAD calls for a transformational approach to climate adaptation, with large-scale public investment programs to adapt to future as well as present threats, and green industrial policies to promote growth and job creation.
Developing countries are already suffering three times more economic losses due to climate-related disasters than high-income countries.
Adaptation costs for developing countries have doubled over the past decade as a result of inaction. This will increase with the increase in temperature, reaching $300 billion in 2030 and $500 billion in 2050.
Adaptation is less a matter of risk management and more of development planning; And here the state has an important role to play as the best platform to prepare for climate impacts.
In many developing countries, vulnerability to economic and climate shocks is complicating each other, locking countries into an eco-development web of permanent disruption, economic uncertainty and slow productivity growth. The greater the rise in global temperature, the greater the damage to poor countries.
Ahead of COP26, UNCTAD is calling on Glasgow to bring to the table the issue of increasing adoption finance. The UN agency is urging reform of the international financial system to get more climate adaptation funding to developing countries.
The report argues that adaptation is less a matter of risk management and more of development planning. Risk management measures may provide partial resilience to current climate threats, but these interventions preserve structures that leave developing countries in a position of permanent vulnerability and shrink more forward-looking options.
UNCTAD Secretary-General Rebecca Grinspan: “The report demonstrates that adequate action to adapt to the climate challenge will require a transformative approach that is proactive and strategic rather than merely retroactive. But governments of developing countries face future climate threats.” This requires adequate policy and financial space to mobilize large-scale public investments, while ensuring that these investments meet development goals.”
Richard Kozul-Wright, Director of UNCTAD’s Globalization and Development Strategy Division, and lead author of the report: “Climate adaptation and development are inextricably linked and acknowledging policy efforts to combat adaptation to make a sustainable and meaningful impact The only sustainable solution is to establish more resilient economies through a process of structural change and to reduce the dependence of developing countries on a small number of climate-sensitive activities.”