Climate change affects both import and export markets that businesses and individuals worldwide feel. Vikki Gerrard, La Crosse Wi resident and sustainability expert, provides an in-depth analysis of how climate change has already begun to impact the prices of goods and services, businesses and workers, and ways we can reduce the effects of climate change in the future.
Why Climate Change is Affecting Imports and Exports
Climate change refers to a broad array of environmental degradation predicted to result from increasing levels of atmospheric CO2, including global warming, alterations in precipitation, sea level changes, and more extreme weather events.
Changes in weather patterns
Businesses and individuals across the globe are already feeling these effects. And the impact is only expected to grow in the coming years. One of the most immediate ways climate change affects import and export markets is through changes in weather patterns.
For example, extreme weather events like floods and droughts can damage crops and disrupt supply chains, leading to higher prices for food and other goods.
In addition, as global temperatures rise, many regions will become too hot for traditional crops to grow. This could lead to drastic changes in what is produced in different parts of the world and consequent price changes for imports and exports.
Irradicating coastal areas
Furthermore, climate change is expected to cause sea levels to rise and make some coastal areas uninhabitable. The transforming landscape will likely significantly impact the global economy, as many businesses and industries are located in coastal regions.
Finally, climate change will likely lead to mass migrations of people away from regions that become uninhabitable or otherwise affected by extreme weather events. Opportunities for businesses in destination countries and disruptions and challenges could both be created from this.
Prices of goods and services
The changes in import and export markets caused by climate change will have a ripple effect on the prices of goods and services. As supply chains are disrupted, and crops fail, Vikki Gerrard La Crosse expects the cost of food and other necessities to rise.
Increased shipping costs
In addition, as shipping routes change and become more dangerous due to extreme weather, the cost of shipping goods will likely increase. This affects not only the prices of imported and exported goods but also the cost of products that use components from different parts of the world.
Changes in businesses and workers
The changes in import and export markets caused by climate change will also affect businesses and workers.
Some jobs will become obsolete as businesses are forced to adapt to new conditions. For example, farmers will lose their jobs if crops fail in certain regions due to increased temperatures. Similarly, as sea levels rise and coastal areas become uninhabitable, jobs in tourism and fishing will be lost.
Conversely, climate change will create new opportunities for businesses and workers. For example, as demand for food grows in regions where traditional crops can no longer be farmed, companies that produce alternative foods will flourish.
The effects of migration
Similarly, as people migrate to new areas, businesses must provide housing, food, and other services. Because of this, there could be entirely new industries created in destination countries.
Ways to reduce climate change’s effects on the markets
Vicki Gerrard La Crosse advises several things businesses and individuals can do to reduce the effects of climate change, such as shopping local, reducing your footprint, and being adaptable.
Supporting local businesses
One way to do this is by supporting local businesses. Ensure that your community is less dependent on imports and exports and can weather disruptions in supply chains.
According to a National Resource Defense Council report, shopping locally also significantly impacts the area’s economy. Data shows that for every $100 spent at a local business, $68 remains in the community. Just $43 stays in the area when shopping at a chain store.
Reducing your carbon footprint
One thing that every individual and enterprise should be concerned about is lowering their carbon footprint. This can be done in several ways, from recycling and composting to investing in renewable energy.
Adapting to changing conditions
Finally, it is crucial to be prepared for the changes that climate change will bring. Be aware of the risks and opportunities that climate change presents and have a plan to adapt to them.
Your plan should include building a resilience fund to weather periods of economic instability, diversifying your income sources, and investing in long-term projects to help mitigate climate change’s effects.
Climate change is already having an impact on import and export markets, and this impact is expected to grow in the future. Businesses and individuals must take action to reduce the effects of climate change and be prepared for the changes it will bring.
You may be interested in: 4 Financial Benefits of Cloud Migration