The losses caused to the Greek economy by natural disasters, such as for example the huge fire in Attica, are also great. The climate crisis (in addition to the government’s political responsibilities) is present and creates costs, which are expected to be very high in the coming years as well.
After all, the aid measures announced yesterday by the government reflect the fact of the existence of costs.
Sources in the Ministry of National Economy and Finance told OT that the exact cost will be calculated after recording the damages and the extent of compensations, leaving open the possibility that the money will come from the current budget or even a supplementary one will be needed.
Information indicates that only the cost of the first package of support measures announced by the Ministry of the Interior exceeds 4 million euros.
This issue is obviously more general in relation to the course of the Greek economy. In economic terms, according to the governor of the Bank of Greece, Giannis Stournaras, the cost of climate change for Greece by the end of the century (2100) is estimated at 2.2 billion euros per year, or 1% of GDP, in today’s terms values.
The above results from the most recent update of the report “The environmental, economic and social effects of climate change in Greece”.
It is worth noting that the forests that burn, the crops that are destroyed, but also the tourism that will decrease as the temperature rises are reflected in this cost.
The turning point of 2050
The 2050s is the tipping point beyond which anthropogenic interference with the climate will be irreversible, the report points out. Among other things, precipitation is expected to decrease significantly after 2050, especially in the southernmost parts of the country. At the same time, however, the frequency of extreme heavy rainfall will increase. Also, fires will become more frequent: 10 to 20 days more will burn our forests by the middle of the century and 15-50 days by the end of the century. At the same time, the sea level will also rise: by 15-20 cm by the middle of the century and by 20-80 cm by the end of it.
The study also studies the regions most affected by climate change, with the aim of designing an effective national adaptation policy to it. Vulnerability is assessed based on physical, but also socio-economic characteristics.
With regard to forest fires, the relatively highest vulnerabilities, by area, inhabitant, total and GDP per capita, appear in Central Greece, Western Greece and the Peloponnese, while Eastern Macedonia and Thrace show high vulnerabilities based on the unequal distribution of GDP per capita . Attica shows the highest vulnerability based on area and population density.
As far as transport is concerned, Eastern Greece shows particularly negative signs, followed by Western and then Central Greece.
Impact on agriculture
The conclusions of the study on the effects on agriculture ring alarm bells, especially considering the case of Thessaly and what happened last year in September with Daniel. Among other things, a decrease in maize production up to 41.7% and cotton up to 34.2% and an increase in wheat production by 13.4% in the worst case scenario by the end of the century are predicted. Especially in shallow and sloping soils, cotton and maize yields are annihilated in the worst case scenario. That is why the study proposes a series of measures, such as limiting the cultivation of cotton and maize in the lowlands.
It is worth recalling that in 2011, when the Bank of Greece’s Committee for the Study of the Effects of Climate Change (EMEKA), after more than two years of studies and research, published its first results, it created a new view on the issues of climate change in Greece. EMEKA estimated the cost of the predicted climate changes for the Greek economy, the cost of any inaction, almost 200 billion euros by 2100 at a 2% discount rate, but also the benefit, of the order of 30%, from taking adaptation measures .
Global problem
However, for this year, the fund for dealing with natural disasters included in the 2024 budget amounts to 600 million euros, and it remains to be seen whether it will ultimately be sufficient. At the same time, it should be remembered that the government has established a 10% discount on ENFIA for owners who insure their homes against natural disasters (of course, apartments that were not insured against floods were not included, as expected, which provoked reactions).
However, the problem is obviously also international, as the Climate Crisis affects the whole world. Disastrous storms in North America and Europe and a series of devastating earthquakes cost the world more than $250 billion in damages in 2023, according to a new report by the world’s largest reinsurer.
In a report published in previous months, German reinsurance giant Munich Re announced that natural disasters in 2023 resulted in global economic losses roughly equivalent to those of the previous year, while insured losses for the year amounted to $95 billion (from $125 billion in 2022). .
Munich Re said the data was characterized by the large number of strong regional storms, noting that about $66 billion in assets were destroyed by storms in North America last year, of which $50 billion was insured. In Europe, storm losses totaled $10 billion, of which $8 billion was insured.
The report’s authors said such high storm losses were unprecedented for the US and Europe. Munich Re warned that statistics on losses from storms, sometimes referred to as “secondary risks” or smaller to medium-sized events, are likely to increase in the coming years.
The climate crisis is making extreme weather events more frequent and more intense.
SOURCE: ot.gr
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