- Carbon Trading
- Renewable Energy
- Waste Management
- All Categories
In a stark revelation, the World Bank has warned that Kenya could face a severe economic setback of up to 7.25% of its GDP by 2050 if decisive actions are not taken to address the impacts of climate change. The “Kenya Country Climate and Development Report” underscores the urgent need for Kenya and other frontier economies to confront the escalating challenges posed by global warming. This article discusses how Climate Change Could Cost Kenya 7.25% of GDP.
The East African nation has already experienced the harsh realities of climate change, including prolonged droughts, which strain its economy. According to the World Bank, without substantial efforts to adapt and mitigate the effects of climate change, Kenya could witness a decline in real GDP ranging between 3.61% and a staggering 7.25% by 2050.
The report “Climate Change Could Cost Kenya 7.25% of GDP” suggests that strategic interventions, such as a higher annual growth rate and structural transformation, could help buffer the economic impact of climate change. The report notes that if Kenya can achieve its ambitious target of 7.5% annual economic growth by 2050, as the government sets, the damage to economic output could be reduced from 2.78% to 5.3%.
Highlighting key areas for intervention, the World Bank advocates increased investments in water resources management, farming, energy, transport, and digital systems. Kenya’s current status as a leader in renewable energy, with around 90% of its electricity sourced from renewables like hydro-generation and geothermal wells, positions it to offer solutions to other nations seeking to lower emissions.
The report emphasizes the potential for Kenya to seize opportunities in the global trend towards decarbonization, creating green jobs and fostering sustainable economic growth. It estimates that achieving a carbon-free electricity energy system by 2030 would require an investment of up to $2.7 billion. Still, it assures that this will be cost-effective in the long run due to lower fossil fuel costs.
In urging the Kenyan government to broaden the scope of climate financing, the report emphasizes the need to allocate resources beyond the renewable energy sector. It calls for increased funding in crucial sectors like agriculture, forestry, land use, transport, and water management, crucial components in building resilience against the growing threats of climate change.
Also Read: Florida Hit By Heavy Rains And Floods