Climate Change IB

Names: Daniela Delgado- Daniel Giraldo- Ronaldo Mendoza
Universidad De La Sabana
International Business
IMPACT OF THE CLIMATE CHANGE
Nowadays, the strong climatic changes and the constant change of the environment have
generated that many people become aware of how our daily habits and what we consumed
greatly affect and generate drastic consequences that in the long term can totally affect not
only the health of people but also the preservation of our planet.
In first place, these changes have greatly impacted so many countries and especially so
many people, because of that many institutions have acted and have been responsible for
encouraging actions to reduce this huge problem and to promote that people with their
actions generate changes that benefit the environment.
According to Cinco Dias, The World Economic Forum has recognized that climate change
is one of the most likely and most impactful risks we face, and also In a study by Allianz
Global Investor, 84% of financial investors in the European Union tend to contemplate the
desclimate change and sustainable development goals of the United Nations as a
fundamental factor in their investment strategies. It is important to talk about the fact that
these institutions contribute greatly to the countries and that they are the ones in charge not
only of taking action but also of encouraging the population and joining together to
generate changes, this bring a lot of motivation for all companies in many countries to that
likewise all contribute a little, On the other hand, other people who are in charge of seeing
in detail how all countries act are the presidents and they also from their high positions can
carry out strategies so that the whole country contributes in one way or another to benefit
our environment.
In second place, At the last spring summit of the International Monetary Fund and the
World Bank, the Ministers of Economy of more than twenty countries have launched a new
coalition that adheres to the Helsinki Principles to promote national actions against the
adverse effects of climate change through of fiscal instruments and the use of public
finances.
It is remarkable to see how institutions, through different strategies, seek to find solutions
that collaborate with climate change, since it is evident that we must all go in search of their
preservation for the future of all and the common good.
In this case, taking actions with fiscal instruments can affect the markets taking into
account the increase of prices, however, they are actions that generate immediate solutions.
It is also important to go in search of methods and strategies much more efficient and
effective in which the results are much faster and notorious, taking into account that this
phenomenon advances much more than imagined.
This is the reason why central banks and supervisory bodies have decided to raise
awareness and move forward firmly to participate in this transition to the financial system,
which should undoubtedly be an important part of the solution. The banking entities have
understood this and have committed themselves to manage sustainable and responsible
financing. This commitment has been formalized in the accession of 49 banks to the
Principles of Responsible Banking defined by the United Nations, including some of the
most representative Spanish entities.
All this encompasses a globalization with a purpose, that is, fighting against the effects of
climate change with innovative and socially just and sustainable measures, which also
indirectly affect the purpose of generating employment and improving the lives of all
people.
By now, it’s clear that climate change poses environmental risks beyond anything seen in
the modern age. But we’re only starting to come to grips with the potential economic
effects.
Using increasingly sophisticated modeling, researchers are calculating how each tenth of a
degree of global warming is likely to play out in economic terms. Their projections carry
large bands of uncertainty, because of the vagaries of human behavior and the remaining
questions about how quickly the planet will respond to the buildup of greenhouse gases.
When we think about the economic damage from a hotter planet, it’s important to
remember that not all costs are equivalent, even when the dollar values are similar.2 There
is a big difference between costs that are high but manageable versus those that might come
with catastrophic events like food shortages and mass refugee crises.
Consider three possible ways that climate change could exact an economic cost:
 A once-fertile agricultural area experiences hotter weather and drought, causing its
crop yields to decrease.
 A road destroyed by flooding because of rising seas and more frequent hurricanes
must be rebuilt.
 An electrical utility spends hundreds of millions of dollars to build a more efficient
power grid because the old one could not withstand extreme weather. 3
The farmland’s yield decline is a permanent loss of the economy’s productive capacity
society is that much poorer, for the indefinite future. It’s worse than what happens in a
typical economic downturn. Usually when factories sit idle during a recession, there is a
reasonable expectation that they will start cranking again once the economy returns to
health.
The road rebuilding might be expensive, but at least that money is going to pay people and
businesses to do their work. The cost for society over all is that the resources that go to
rebuilding the road are not available for something else that might be more valuable. That’s
a setback, but it’s not a permanent reduction in economic potential like the less fertile
farmland. And in a recession, it might even be a net positive, under the same logic that
fiscal stimulus can be beneficial in a downturn. 4
Por otro lado nosotros, como ciudadanos responsables, podemos y debemos tomar
decisiones, porque si somos parte de este problema recordemos que los motivos antrópicos
son las principales causas del calentamiento global, y, por tanto, del cambio climático, ¿por
qué no habríamos de serlo también de la solución?, a lo largo de los años se aprecia una
sociedad anestesiada que no se inmuta ante la grave situación en la que nos encontramos y
deciden viajar por todo el mundo buscando pequeños gestos que cada uno podemos
incorporar a nuestra vida cotidiana y que contribuyen positivamente a un cambio en la
tendencia. 5
REFERENCES:
1. CINCO DÍAS, J.D (2019, 30 abril). La lucha contra el cambio climático impulsa la
globalización. Recuperado 2 octubre, 2019 de
https://cincodias.elpais.com/cincodias/2019/04/29/economia/1556554304_260163.h
tml
2. Foundation, T. (2019). Culture and climate change. [online] news.trust.org. Available at:

https://news.trust.org/packages/culture-and-climate-change/ [Accessed 2 Oct. 2019].
3. Nytimes.com. (2019). Climate Change’s Giant Impact on the Economy: 4 Key Issues.

[online] Available at: https://www.nytimes.com/2019/01/17/upshot/how-to-think-about-the-
costs-of-climate-change.html [Accessed 2 Oct. 2019].
4. The Balance. (2019). What Has Climate Change Cost Us? What's Being Done?. [online]
Available at: https://www.thebalance.com/economic-impact-of-climate-change-3305682
[Accessed 2 Oct. 2019].
5. Principia.io. (2019). Cultura y cambio climático - Principia. [online] Available at:
https://principia.io/2016/12/01/cultura-y-cambio-climatico.IjQ4MyI/ [Accessed 2 Oct. 2019].

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Names: Daniela Delgado- Daniel Giraldo- Ronaldo Mendoza

IMPACT OF THE CLIMATE CHANGE

2. Foundation, T. (2019). Culture and climate change. [online] news.trust.org. Available at:

3. Nytimes.com. (2019). Climate Change’s Giant Impact on the Economy: 4 Key Issues.

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