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October 2008                                                                                                   Volume 15 - Number 1

    

 

Research Reports on Global Warming...

     

 


 

Adaptation:  An Overview of the World Business Council for Sustainable Development
By: Alfred Birtz


Climate change will have significant impacts on populations and environments around the world.  Furthermore, it is likely that in the absence of concerted efforts to mitigate greenhouse emissions, climate change will have negative effects on business and global markets. It will likely lead to a change in existing business models and current risk management structures (1).

On 05 August 2008, the World Business Council for Sustainable Development (WBCSD) released a brief titled, Adaptation: An Issue Brief for Business.  The WBCSD examines the impact of climate change as well as possible adaptations and mitigation techniques that are available.  Bleak outlooks on the impact of climate change to some of he poorest of economic areas of the world highlight this report.  On a human and ecosystem level it is estimated that upwards of 250 million people in Africa alone could face water shortages as well as up to a fifty percent decrease in rainfall fed agriculture by the year 2020.  From a socioeconomic standpoint, this would lead to increased conditions for drought and famine, large scale migration, large scale increase in disease susceptibility, and increase in conditions that could lead to global conflicts.

The increase in global temperatures will continue to lead to stronger weather cycles such as El Niño.  This will only increase the frequency and magnitude of global extreme weather events.  There must be a combined strategy between mitigation and adaptation.  It is widely accepted that green house gasses (GHG) have led to in increase in average global temperatures.  Mitigation would not prevent the impacts that will be felt due to climate change.   However, it will have a positive impact and reduce the risk and magnitude of climate change as a whole.  Adaptation would also not allow us to prevent the impacts that will be felt from climate change, however, it will help us to prevent society and businesses against events such as drought, famine, hurricanes, or flooding (2). 

The WBCSD reports that even though the certainty of climate change causes possible harm to the business community, it also opens up new opportunities.  For example, energy and utility companies are facing a crunch due to increase global temperatures which are placing stress on the system, however, there are now many opportunities for the increase in “green” energy and the shift from fossil fuels to renewable energy sources.  Business adaptation, while helping to maintain stable revenues will also help to mitigate climate change impact in the long term.

Under the Kyoto Protocol, the United Nations Adaptation Fund (UNAF) was established (3).  This fund helps those in developing countries finance adaptation projects in order to better prepare themselves for climate change.  The funding for this program is not on a voluntary basis, but is instead levied on industrialized countries as Clean Development Mechanism (CDM).  The CDM allows industrialized countries to purchase carbon credits and then two percent is passed onto the UNAF.  Projects and development such as this will only better prepare people globally for the impacts that will be felt due to climate change.


         
(1)Intergovernmental Panel on Climate Change (IPCC), Fourth Assessment Report, Climate Change 2007:    Synthesis Report, Summary for Policymakers, 17 November 2007.
(2)http://www.wbcsd.org/DocRoot/2W6pIkEp3ra0vRDXZ961/Adaptation.pdf
(3)United Nations Framework Convention on Climate Change (UNFCCC) Fact Sheet for COP13 Meeting: The Need for Adaptation.