high temperature
Many countries are experiencing “unprecedented” severe heat waves, one of the most salient effects of the climate change crisis threatening the world, posing wider challenges at all levels, particularly in terms of economic activity.
The “severe heat” has brought a terrible shadow to economic reshaping, from the impact of the heat on work and productivity, and then on the overall economic development, and even the impact of the heat on various economic sectors, including agriculture, industry, tourism, and even insurance.
An article published by the Financial Times titled “Combined with unprecedented heat waves: How are heatwave times reshaping the economy?” ’ report highlights the impact of the climate crisis on economic reorientation:
- Experts have warned that the economic impact of a new era of record temperatures may extend beyond tourism.
- As hot weather becomes more common due to climate change, industries such as construction, manufacturing, agriculture, transportation and insurance are preparing to change the way they operate.
- A study published last year by academics at Dartmouth College found that heat waves caused by man-made climate change cost the global economy an estimated $16 trillion over a 21-year period in the 2190s.
- “Extreme heat can reduce economic growth, worsen the economy and so on,” said Cathy Bowman-McLeod, director of the Atlantic Council’s Resilience Center.
- But those costs are likely to mount over the coming decades as economies realign themselves to mitigate the risks and disruptions caused by the extremely hot peak season.
Heat and heatstroke can lead to stroke
Difficulty working
One of the main reasons extreme heat poses a threat to the economy is that it makes work harder. Because higher temperatures result in lower productivity.
Laura Kent, one of the professional associations that recently released a report on how industry needs to adapt to extreme heat, said, “In hot conditions, humans generally work slower, take more risks, and our cognitive function declines.”
According to a study by the International Labor Organization, by 2030, the world will lose the equivalent of more than 2% of total working time each year, either because of overheating or because workers are forced to slow down.
Some 200 million people in cities are at risk of extreme heat today and this number is expected to increase eightfold by 2050, said Sachin Poit, climate resilience manager for the C40 network.
work rules
However, some countries specify a maximum temperature at which work must be stopped.
In the UK, for example, where extreme heat has historically not been a problem, there is only a recommended threshold for stopping work in cold rather than hot temperatures.
The report says the poorest and least resilient tend to be the most affected by extreme temperatures, as productivity losses tend to be concentrated in jobs that often pay below-average wages.
Dr Abdel-Masih Semaan, professor of environmental studies, said in an exclusive statement on the Sky News Arab Economy website that various economic sectors are being disproportionately affected by climate change, which is reshaping these sectors, especially the “agricultural sector”, while high temperatures have led to a decline in world crop production, leading to a wider crisis.
In his speech, he also highlighted the vulnerabilities faced by sectors such as industry and insurance, tourism, and the movement of people from one place to another, as unprecedented extreme heat factors bring a different reality, greatly affecting the details of economic activity in these sectors.
At the same time, Saman pointed out the impact of high temperature on work. He said: “High temperature affects the productivity of workers, which affects the overall economic development.”
- According to the International Labor Organization, outdoor workers, especially those employed in agriculture or construction, are at particular risk of death, injury, illness and reduced productivity from heat.
- Academic studies show that between 1992 and 2016, 285 construction workers died from heat in the United States, accounting for about one-third of all heat-related occupational deaths in the country.
- But as extreme heat waves become more frequent, so do those who work indoors, including the world’s 66 million textile workers, who often work in unair-conditioned factories and workshops, many of which are in the southern hemisphere, where extreme temperatures are more extreme and dangerous.
The environmental studies professor added: “Human beings are the creators of development, and while many businesses and jobs face widespread impacts from heat that reduces the productivity of workers in those jobs and businesses, economic development in general faces broad challenges that impact national economies.”
Most Prominent Industry
Regarding the direct impact of extreme heat on certain economic sectors, the Financial Times report quoted a group of specialist experts as saying:
- The impact of extreme heat on workers has become a “human rights issue” requiring stronger policies to protect workers.
- The consequences of extreme heat for workers are forcing industries to rethink more existential issues, such as where and how they operate.
- The construction industry is one area that may need a complete makeover. Harsh weather conditions not only affect construction work on site, but actually affect materials, increasing costs for the industry.
- Manufacturing is another sector facing major changes, as factories and warehouses “were not just designed for the temperatures we see and expect to see.”
- “Infrastructure” is at risk and climate change will “shorten its lifespan”.
- Likewise, for the agricultural sector, extreme heat can reduce crop yields, leading to higher prices and food insecurity.
- The same is true for the insurance industry, where the cost of insurance rises when jobs in certain industries become riskier.
Data from reinsurer Swiss Re showed insurers’ losses from heat hazards, such as crop failure due to drought or property damage from wildfires, totaled $46.4 billion in the five years to 2022, compared with $29.4 billion in the previous five years.
agricultural sector
Dr. Ahmed Kennawi, a researcher at the Cairo Center for Agricultural Research specializing in climate change, said in an exclusive interview with Arab Economic Sky News that high temperatures directly and indirectly affect various economic sectors, explaining that the agricultural sector, for example, is directly affected by temperature fluctuations, frost, severe cold, sandstorms and other phenomena.
He added: “This has a direct impact on the entire (agricultural) sector, including impaired crop productivity (insufficient productivity), changes in planting dates, yield losses, and the inability to grow crops in some places due to soil salinity and seawater intrusion, in addition to the impact of sea level rise, which affects nearby agricultural areas.”
The fisheries sector is also affected by this, especially with regard to fish migration. In addition to causing damage to livestock production.
Al-Kenawy explained that the indirect economic loss or damage is related to the increase in consumption and import bills that these data lead to, which is to compensate for the shortage of crops, which makes many societies vulnerable to shocks and climate change, especially in Africa, for example, where many countries face a wide range of challenges mainly caused by climate change, including the risk of drought and hunger in many countries, rising migration rates and internal conflicts over water resources, etc.
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climate pledge
Going back to the reports in British newspapers, it shows that the climate pledges made by countries put the world on the right track of rising temperatures.
The report reviews national and international efforts to address the climate crisis and its economic impact.
Cathy Bowman-McLeod, director of the Atlantic Council Resilience Center, was quoted in the report as saying that businesses and policymakers need to act now to prepare for extreme heat, explaining that a major rethink of our economy may be required,
Countries that depend on tourism see a sharp drop in tourist numbers during the peak season, or companies are unable to operate during key months of the year.