The Worldwide Society Continues to Fight Climate Change and its Impact on Finances

By Lara Adams / Posted: Mar 18, 2020 / 0 Comments / Posted in Personal Finance

Most people have been informed about climate change since the 1990s. Hundreds of thousands of students, teachers, health care professionals, communities, and other people from different walks of life were doing their best to demand climate action. Besides, more than 400 international companies committed to set climate goals.

climate change impact on finances

Right this call to action led to creating the Framework Convention and developing climate agreements and protocols. The main goal of the conferences of the parties is to assess progress in dealing with climate change and discuss different strategies to prevent the global climate catastrophe. Since 1992, climate protocols started to enter into force.

In its turn, the United Nations Climate Change Conference (UNCCC) stated that future global warming should be limited to below 2.0 °C (3.6 °F). The international environmental treaty was created in Rio de Janeiro on 9 May 1992 with the purpose of stabilizing “greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”.

It was signed by 154 nations on 12 June 1992 that allowed taking further actions towards the primary goal – to protect the climate system and make developed countries take the lead in addressing and preventing climate change.

Right after this protocol, the Paris Climate Agreement was adopted in 2015 entered into force on 4 November 2016 with the purpose of lowering the target to 1.5 °C.

Is climate change in 2020 possible?

The year 2020 is considered a critical year for our future and especially for the climate. We can notice it by looking closer at the current situation. What do we have? More often flooding in the Central US, a longer wildfire season in California, droughts across the Great Plains, terrible catastrophe in Australia, etc. The list goes on and on with each passing day. It means the year 2020 should be a year for comprehensive and drastic actions to prevent global climate change.

The enormous gap between what countries do, and what scientists are required to do, to prevent climate catastrophe still exists. National Governments are obliged to decide how low their emissions could go. Such countries as the United States of America, Argentina, Mexico, Japan, and other local governments work with national leaders to back up climate pledges. The point is that major corporations should demonstrate their ability and preparedness to reduce their emissions. This action will make heads of state more confident in setting ambitious goals.

What consequences to expect?

At the moment, more than 67% of Americans demand the Federal Government do more for reducing the effects of global climate change. It can be explained by the fact that almost every American citizen is informed about climate change consequences.

It affects all regions all around the world. The most common consequences are more frequent heat waves, forest fires, flooding, rising sea levels, and droughts. It leads to significant risks for:

  • human health, such as heat and cold-related deaths in various regions;
  • wildlife, such as the extinction of different plant and animal species;
  • society and economy.

What costs to foresee for the society and economy?

High costs for society and the economy are caused by significant damage to property, infrastructure, and human health. More than 5.6 million people were affected by floods from 1980 to 2011. The direct economic losses were estimated at more than 90 billion euro.

Notably, climate change has a direct impact on such sectors as agriculture, forestry, tourism, and energy, as they rely on certain temperatures and precipitation levels. It could cause an incredible resentment on the part of business owners as the tragedy might strike their business and result in unforeseen expenses because of any kind of damage or loss.

The impact of climate change on finances and how to address unexpected financial issues?

Most of the entrepreneurs who had experienced damages to their business due to different climate change consequences chose to apply for unsecured personal loans in order to cover their unplanned emergency expenses.

It helped them to replace damaged products, restore their business condition, and resume the work of their establishments and companies.

A lot of people were also affected by the fact the agricultural industry was wiped out entirely because of the climate change consequences. Their sole and primary livelihood was depended on it, so most of them remained with no stable income.

In order to maintain their normal living conditions and needs, most of them applied for fast cash loans that were a perfect solution to deal with sudden expenses and hardships they had to face.

Along with these kinds of loans, one-hour loans, guaranteed loans for bad credit, and no credit check loans were chosen by many people who had been hit by disasters. Each type of loan is available even for people with bad credit, and it’s typically approved on the same day of application.

Are there any ways to prepare for it?

People who struggled with covering their urgent expenses shared their experience and asked other citizens to take care of their current financial situation and take action to protect themselves and their business from such climate change risks.

The best way to avoid a massive impact on revenue and prevent any kind of damage is to build special structures that will be able to withstand any weather conditions. Think of a contingency plan to move expensive livestock and business equipment away from a danger zone in case if a disaster comes.

Bottom Line

Considering the fact that each American has experience in dealing with the global climate catastrophe consequences, the demands, and the pressure of taking actions towards preventing it could become more aggressive. The responsible organizations realize it as well as the likelihood of the nearest collision with climate change.

At the moment, the UNFCCC has 197 responsible parties. All these parties strive to devise new strategies to combat the catastrophe, respond appropriately to emergency climate issues, and implement a suitable road map.

With their opportunities and citizens’ efforts, the idea of addressing the climate crisis is becoming closer to reality. The main goal is to keep moving in developing the existing strategies and thinking of new ways of overcoming the impending shift in the global climate system.

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