Climate change can bring down GDP

MANILA, Philippines – The World Bank has warned the Philippines and other developing countries that they stand to lose four to five percent of their annual gross domestic product if they fail to address the worsening problem of climate change.

In its 2010 World Development Report released yesterday, the World Bank said developing countries like the Philippines, which still rely substantially on agriculture, would be most vulnerable to the ill-effects of climate change.

“Climate change threatens all countries, with developing countries most vulnerable. They will bear 75 to 80 percent of the cost of the damage of climate change,” the World Bank said in the report.

Marianne Fay, incoming chief economist of the World Bank’s sustainable development network and co-director of the 2010 World Development Report, said yesterday in a teleconference from Washington D.C. that the Philippines was encouraged to invest more in the development of indigenous sources of technology and lessen its dependence on imported fuel.

Currently, the Philippines’ contribution to global carbon emissions is quite small, at only 0.27 percent of the total.

However, Fay said that being an archipelago that still relies on agriculture, the Philippines may see considerable reduction in productivity if the adverse effects of climate change are not countered.

Fay said the World Bank was willing to assist developing countries like the Philippines in implementing projects aimed at addressing climate change via loans and technical assistance.

Bert Hofman, World Bank’s country director for the Philippines, said in a statement that one of the objectives of the World Bank’s loan programs for the Philippines for 2010 to 2012 was providing solutions to climate-related problems.

“In cooperation with other development partners, the World Bank is committed to assist the Philippines in mobilizing existing and future sources of international financing assistance,” Hofman said.

The World Bank, Asian Development Bank and International Finance Corp. (IFC) have agreed to set up a common fund that countries may tap to implement projects addressing climate change.

Joe Tuyor, senior operations officer of the World Bank’s Philippine Sustainable Unit, said in a briefing yesterday that the three foreign lenders had pledged a combined $6 billion to lend to countries wanting to implement projects aimed at reducing carbon emissions. –Michelle Remo, Philippine Daily Inquirer