Greener Economic Transition Should Promote Equity and Inclusivity – Study

The catastrophic impact of climate change on people and the economy has prompted APEC members to make the transition to the low-carbon economy. However, this shift needs to promote equity and inclusivity, according to a recently published policy brief.

“There is no denying the impact of climate change to our economy and society. For example, without climate change action, the APEC region could absorb losses of up to 18.3 percent of GDP by 2050,” said Rhea C. Hernando, a senior researcher with the APEC Policy Support Unit.

“There are also significant health consequences—rising temperatures could worsen respiratory illnesses while frequent rainfall could give rise to outbreaks of malaria and dengue fever.”

It is estimated that by 2030, the direct costs of climate change to health could reach around USD 2 to 4 billion per year. The APEC region represented about 60 percent of global greenhouse gas (GHG) emissions in 2019.

“To combat climate change, reducing GHG emissions is crucial and decarbonization is necessary,” added Hernando. “Take fossil fuels, for example. They contribute significantly to climate change, accounting for more than 75 percent of GHG.”