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‘Climate adaptation investment can help Nigeria avoid $19.9b GDP loss’

By Gloria Nwafor
18 January 2023   |   5:38 am
By investing $1.5 billion in climate adaptation, Nigeria can prevent climate damages and about $19.9 billion GDP loss to its economy, a study by Standard Chartered has shown.

By investing $1.5 billion in climate adaptation, Nigeria can prevent climate damages and about $19.9 billion GDP loss to its economy, a study by Standard Chartered has shown.

The study, ‘The Adaptation Economy’, which investigates the need for climate adaptation investment in 10 markets, including Nigeria, China, India, Bangladesh and Pakistan, revealed that without investing a minimum of $30 billion in adaptation by 2030, these markets could face projected damages and lost GDP growth of $377 billion – over 12 times that amount.

The projection, according to the study, assumed that the world succeeded in limiting temperature rises to 1.5°C, in line with the Paris Agreement.
The new study according to Standard Chartered, said lack of climate adaptation investment could cost the emerging markets hundreds of billions by 2030

Leading the pack is India, which will benefit the most from adaptation investment, with a market that would require an estimated $11billion to prevent climate damages and lost growth of $135.5 billion in a 1.5°C warming scenario.

Other countries include China with an economic benefit of $111.9 billion by investing $8.1 billion; Indonesia, $39 billion with a minimum investment of $4 billion and the United Arab Emirate (UAE), expected to gain an economic benefit of $31. 5 billion by investing $2.7 billion, among other 10 emerging markets.

According to the report, failure to invest the bare minimum needed to withstand projected climate damage could cost emerging markets hundreds of billions in climate damages and lost Gross Domestic Product (GDP) growth this decade.

In a 3.5°C scenario, the study stated that the estimated minimum investment required more than doubles to $62 billion and potential losses escalate dramatically if the investment is not made.

Examples of climate adaptation projects, the study said, include the creation of coastal barrier protection solutions for areas vulnerable to flooding, the development of drought-resistant crops and early-warning systems against pending natural disasters.

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