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WB: Climate change will bring losses to Albania as much as 15.7% of GDP by 2050

2024-07-17 11:58:00, Ekonomi CNA
WB: Climate change will bring losses to Albania as much as 15.7% of GDP by 2050
Illustrative photo

Climate change with extreme temperatures and floods will damage the economy of the countries of the Western Balkans.

The World Bank Group's Western Balkans Climate and Development Regional Report (CCDR), published today, says that together, the six Western Balkan economies need to invest at least $37 billion over the next ten years to better protection of peoples and their assets from the damaging and escalating impacts of climate change.

Based on an analysis of three risks – river floods, droughts (through impact on crops) and heat stress are expected to cause Albania losses of 15.7% of GDP by 2050.

The Bank estimates that Albania's losses are the largest in the region, as the average of other countries in the Western Balkans is one third of Albania's.

Serbia is also expected to suffer major damage from the climate, followed by Bosnia and Herzegovina. Floods are expected to cause the greatest GDP damage of all countries, ranging from about 15% loss in 2050 GDP for Serbia and about 3% of GDP loss for North Macedonia under the growth trend.

The impact of drought, modeled through its impact on maize and wheat production, will be smaller, as these crops account for a small share of agricultural production in most BB-6 countries, and despite the fact that droughts are generally considered an important climate risk.

Higher growth could offset some of the expected damage in much of the region. The exception is Serbia, where there is greater damage from floods

Earthquakes, although not a climate change hazard, are estimated and expected to cause significant production damage, given the region's historical seismic hazards.

The Bank estimates that damage from climate risks can be mitigated through adaptation investments and early interventions.

Modeling the impact of adaptation investments for the three risks (river floods, droughts through impact on cereals) showed that annual investments should average 1.3% of GDP across the region for 2025-50 and could bring a average annual benefit of 1.7% of GDP./Monitor





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