The World Bank warned Friday that Kenya would possibly lose as much as 7.25% of its financial output by 2050 if doesn’t take decisive steps to adapt to local weather change and reduce its results.
Like different so-called frontier economies, the East African nation has been affected by the results of world heating, together with extended droughts, in recent times.
“By 2050, inaction against climate change could result in a decline in real gross domestic product (GDP) of 3.61-7.25%,” the World Bank stated in a brand new publication known as Kenya Country Climate and Development Report.
“The impact of climate change on the economy could be partly buffered by a higher annual growth rate and structural transformation,” it stated.
If Kenya’s economic system grows 7.5% per yr by means of to 2050, in keeping with the federal government’s goal, the injury of local weather change to financial output would drop to 2.78-5.3%, the report stated.
It known as for elevated investments in water assets administration, farming, vitality, transport and digital techniques to assist scale back the influence of local weather change.
With about 90% of its electrical energy coming from renewable sources like hydro-generation and geothermal wells, Kenya is properly positioned to offer options to different international locations seeking to decrease their emissions, the report stated.
“If Kenya maintains a low-carbon growth path, it could seize opportunities created by the global decarbonization trend and create green jobs,” it stated.
While attaining a carbon-free electrical energy vitality system by 2030 would require investments of as much as $2.7 billion, it is going to be cost-effective in the long term because the investments can be offset by decrease fossil gas prices, the report stated.
It additionally urged the federal government to broaden the vary of local weather financing accessible by rising the scope of initiatives to make them nationwide and bankable.
“Finance directed toward climate in the development budget disproportionately targets the renewable energy sector,” it stated. “Agriculture, forestry and land use, transport, water management and other key sectors are significantly underfunded.”
Source: www.dailysabah.com