• Mon. May 27th, 2024

Supply chain disruption due to climate change: the importance of business-led adaptation in the Nordics

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May 15, 2024

Mikaelsson highlighted the impact of extreme weather events and degraded ecosystems on global supply chains, exacerbated by climate change. These disruptions pose risks such as shortages of essential goods, halted production, and rising prices, which could have severe consequences for food security, healthcare access, and business operations in the Nordic region.

Europe is particularly vulnerable due to its heavy reliance on imports and critical production being concentrated in climate-vulnerable regions. The EU, for example, relies heavily on agricultural and pharmaceutical imports from outside its borders, putting essential sectors at risk in the face of climate volatility.

Recent research by UCL has shown that the global GDP loss from climate change could increase significantly when considering the cascading impacts on supply chains. The study introduces the concept of “indirect economic losses” from climate change and projects potential net economic losses of between USD 3.75 trillion and 24.7 trillion by 2060 in adjusted 2020 dollars.

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