Climate change could cost $ 2 trillion a year by 2100: OMB

Cracked dry land can be seen on March 28, 2022 in a flooded area of ​​Lake Powell in Pagen, Arizona. As the severe drought hit parts of the western United States, Powell Lake’s water level dropped to its lowest level since the Colorado River was dammed in 1963.

Justin Sullivan | Getty Images

Floods, droughts, forest fires and hurricanes that have worsened by climate change could cost the U.S. federal budget about $ 2 trillion by the end of the century, the White House said in an assessment on Monday.

An analysis by the Federal Budget Management and Budget Office found that climate change could affect federal revenue by a loss of 7.1% year-on-year by the end of the century.

The report also specified that the federal government could spend an additional $ 25 billion and $ 128 billion annually on coastal disaster relief, flood insurance, crop insurance, health insurance, forest fire extinguishing and flooding at federal facilities.

“The fiscal risk of climate change is enormous,” wrote Candace Vahlsing, OMB’s associate climate director, and Danny Yagan, chief economist, in a blog post on Monday.

“Climate change threatens communities and sectors across the country, including floods, droughts, extreme heat, forest fires, and hurricanes that affect the U.S. economy and everyday American life,” they wrote. “Future damage could reduce current damage if greenhouse gas emissions continue to continue.”

The news comes on the same day as a highly anticipated report by the UN Climate Science Panel, which warned that reducing global warming to 1.5 degrees Celsius would require greenhouse gas emissions to peak before pre-industrial levels by 2025.

The world has already warmed by about 1.1 degrees Celsius above pre-industrial levels and by 2100 the global temperature is on the rise of 2.4 degrees Celsius.

The WTO analysis warned that an increase in fires could increase federal firefighting costs by between $ 1.55 trillion and $ 9.6 billion annually, with an increase of between 78% and 480% by the end of the century. Meanwhile, more frequent hurricanes could increase coastal disaster response spending by between $ 22 billion and $ 94 billion annually by the end of the century.

In addition, 12,000 federal buildings across the country could be flooded as a result of a ten-meter rise in sea level, with a total replacement cost of more than $ 43.7 billion, the analysis said. However, by 2100 it would be a figure of extreme sea level rise. A 2021 U.S. National Oceanic and Atmospheric Administration report predicted sea level rise in the U.S. from 0.6 meters (almost two feet) to 2.2 meters (just over seven feet). feet) by the end of the century.

President Joe Biden released his 2023 budget proposal last week, calling for nearly $ 45 billion in climate change, clean energy and environmental justice programs. The budget, which includes a nearly 60% increase in climate finance in 2021, comes when the president’s basic legislation on climate change is stalled in Congress.

The part of the $ 1.75 trillion climate bill approved by the House, called the Build Back Better Act, would be the largest federal clean energy investment ever, and could help the U.S. halve its president’s commitment to halve emissions by 2030. Rhodium Group non-partisan analysis company.

Earlier this year, Biden said he was likely to break the plan, but said Congress still believed it would approve parts of it, including $ 555 billion in climate spending.

Climate change could cost $ 2 trillion a year by 2100: OMB

Source link Climate change could cost $ 2 trillion a year by 2100: OMB

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