The Next Big Financial Crisis Caused By Climate Change
One of the biggest challenges of our lifetime
These days we have an increased number of natural disasters, which have a direct impact on our economy.
For example, Hurricane Katrina, one of the most destructive natural disasters in U.S. history, caused damage worth $125 billion in late August 2005. That’s a lot of money — more than the annual economic output of most nations.
This natural disaster caused flooding, which hit New Orleans particularly hard. There, more than 300,000 homes were destroyed.
If we also take into consideration that about 19% of the U.S. oil production capacity came to a halt during the hurricane season that year, we can see why such an event can have a devastating impact on our economy.
I’ve used this example to illustrate how climate change not only has an environmental and a human toll but also comes with a huge financial cost.
There are many economists who believe that this could cause the world’s next big financial crisis.
Why climate change could cause the next financial crisis
There’s no doubt that climate change is one of the biggest challenges we have to face these days, and for…
