The major industrial and economic centers of China and the United States are among the world’s most vulnerable regions to an increasingly destructive climate power Extreme weather conditions caused by the changes, according to Monday’s comprehensive analysis.
The new findings highlight the urgent need for governments to focus on decarbonization and adaptation measures such as flood protection and show that the economic impacts of climate change can be severe and widespread.
China has the most dangerous regions
Nine of the top 10 regions at risk are in China, with the country’s two largest subnational economies, Jiangsu and Shandong, topping The Cross Dependency Initiative (XDI) global ranking.
After China, the United States is the most dangerous country. Florida, ranked 10th globally, is the most endangered US state, followed by California and Texas.
China, India and the US make up more than half of the states and provinces in the top 100.
“We’re getting an extremely strong signal from countries like China, the US and India, and we’re seeing essentially the engine rooms of the world economy where there’s a lot of built-in infrastructure,” Carl Mallon, head of science and innovation at XDI, said on briefing.
The analysis showed that both inland and coastal flooding pose the greatest risk to physical infrastructure. The report also addresses the dangers of extreme heat, wildfires, soil movement, high winds, and frost and thaw.
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The analysis covers more than 2,600 territories around the world, modeling damage from 1990 to 2050 based on the “pessimistic” scenario of three degrees Celsius global warming by the end of the century outlined by the UN Intergovernmental Panel on Climate Change.
– Capital flight? –
The researchers say it is the most comprehensive dataset of its kind and hope it will serve as a basis for future climate and economic policy.
It could also influence investment decisions as companies reassess financial risks based on exposure to climate change-related vulnerabilities.
“People who want to build a plant, create a supply chain that spans these states and provinces, will think twice about where they are,” Mallon said.
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He said that “at best it could be a risk assessment in these areas, at worst it could be capital flight as these investors try to find safer havens.”
Other economic centers in the top 100 include Beijing, Buenos Aires, Ho Chi Minh City, Jakarta, Mumbai, Sao Paulo and Taiwan.
The top 100 also includes the states and provinces of Australia, Belgium, Canada, Germany and Italy.
In Europe, the region of Lower Saxony in Germany is most at risk, while the Italian region of Veneto, home to the lagoon city of Venice, ranks fourth in Europe.
According to simulations, Southeast Asia has seen the sharpest increase in damage from 1990 to 2050.
XDI said it released the analysis in response to investor inquiries.
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“Because extensive built infrastructure usually coincides with high levels of economic activity and capital cost, it is critical that the physical risk of climate change is properly understood and assessed,” XDI CEO Rohan Hamden said in a press release.