Global warming will lead to economic loss as well as human life

- The time has come for everyone to take the warning against climate change seriously

The latest report of the Intergovernmental Panel on Climate Change (IPCC) has issued a stern warning regarding the dangers posed to mankind by climate change. Extreme levels of natural disasters, such as heat waves, floods, droughts, torrential rains, and hurricanes, have also been warned. Some of these disasters are being witnessed today in many countries of the world including India. If humans improve their behavior, global warming will reach 1.50 degrees Celsius by 2020. Can be limited to Celsius. And if that happens, natural disasters can be prevented.

As far as India is concerned, in order to achieve the Paris Agreement, some things need to be implemented in the country by 2020. One of the main things is the change in power generation sources. India will have to switch to clean energy like solar and wind energy as soon as possible. Even if the Paris Agreement is signed at the level of the Government of India, the various states and municipalities and corporations of the country whose local bodies will also have to fulfill their responsibilities in it. Any negligence in controlling global warming is a threat to human life but can also be catastrophic for the country's economy, especially financial institutions, including the country's banks.

Epidemics such as Covid-12 appear only once in a hundred years and are temporary and can be eradicated through preventive measures. But disasters such as landslides, hurricanes, floods and earthquakes caused by global warming are emerging as a new kind of threat to the country's economic situation, especially for financial institutions like banks.

The hurricane situation in the last two years should be considered as a wake-up call for us as the country's banks are coming out of the problem of non-performing assets (NPAs). The demand of the hour is to prevent damage due to increasing natural calamities, especially to agriculture and industry, otherwise the burden of such losses will not be borne by the banks and insurance companies.

Policies against climate change will not be limited to collecting data on how much damage is being done to the country's living standards and goods, but will also include comprehensive measures to reduce carbon emissions and warming. However, there has been a slowdown in power-powered vehicles and plans to shift to wind and solar energy to reduce carbon emissions. Floods and hurricanes cause severe damage to crops as well as agriculture. It has been observed many times that the burden of losses on the agricultural sector also falls on the banks and financial institutions. With climate change, lending to sensitive sectors like agriculture is becoming more and more risky for banks. There are many opinions as to whether corona is a man-made disease that spreads naturally, but it is no exaggeration to say that climate change is a man-made disaster.

The intensity of hurricanes that have been frequenting the country for some time now could be measured in advance due to modern technology. Based on this information, great damage to human life could be prevented but agricultural people and property could not be protected. As a result, there is an unforeseen financial burden on banks and insurance companies. If proper steps are not taken, this burden will continue to increase.

Banks and insurers now need to assess how much global warming risks can affect their business and what industries are facing the risks of climate change. Today the whole world is fighting against polluting industries and every country is tightening the standards for those polluting industries. Pollution-intensive industries are subject to heavy fines by regulatory authorities, and if such industries do not show discipline, they are subject to disciplinary action, which results in the closure of the industrial unit.

Banks and insurers are now required to identify the risks associated with climate change in the same way that banks consider trade risks against a borrower when approving loans. We need to keep an eye on the effects of global warming not only within the country but also abroad to help mitigate the risks associated with loans and prevent financial institutions from increasing the proposed stress on themselves. Climate in every policy and plan formulated The aspect of change has to be kept in view.

If action is not taken against climate change, India may incur an economic loss of ૩૫ 3 trillion in the next 50 years, but with proper planning, India could reap the benefits of ૧ 11 trillion in 20 years, according to a study. . It is to push the country into economic loss that in a win-win situation it will now be up to each stakeholder to think.