According to a new World Bank report, climate change could severely hinder efforts to reduce poverty globally, with climate-induced income losses potentially pushing an additional 41 million people into extreme poverty by 2050.
The report, titled The Future of Poverty: Projecting the Impact of Climate Change on Global Poverty through 2050, projects that the global poor could increase by up to 148.8 million, with South Asia alone accounting for 48.8 million by 2030.
The study highlights that the rise in poverty due to climate change is expected to be particularly pronounced in Sub-Saharan Africa, South Asia, and Latin America and the Caribbean. These regions, with existing vulnerabilities and weaker social protection systems, are most at risk of suffering from extreme weather events.
The report stresses the importance of international cooperation to tackle the global climate challenge. It calls for high-income countries, the largest contributors to global emissions, to support low- and middle-income nations in adapting to climate change. This support should include financial resources, technology transfer, and capacity-building to enhance resilience to climate shocks and promote low-carbon development.
It further suggests that reducing income inequality should be central to poverty reduction strategies. Even small increases in inequality can significantly increase poverty levels, according to the report.
The World Bank emphasizes the need for inclusive growth policies, reduced barriers to education and employment, and strengthened social protection systems. Targeted support, especially for the most vulnerable populations, and investments in healthcare, education, agriculture, and climate adaptation measures are crucial to addressing these challenges.
Additionally, rising food prices, exacerbated by climate change, are expected to intensify global poverty, particularly in developing countries where food consumption forms a large portion of household expenses.
The report concludes that if no significant changes are made, global economic output could be reduced by 23% by 2100 due to climate change. In most scenarios, global income losses could exceed 20%, underscoring the severe economic consequences of inaction.
