Unexpected Ways Climate Change Impacts the Economy
Climate change isn’t just a driver of the global water crisis. It also precipitates a chain reaction that affects every part of life. As greenhouse gases fill the earth’s atmosphere and deplete mass swaths of the world of potable water, droughts become more frequent and severe, in turn negatively impacting global agriculture and the world’s food supply.
A damaged agricultural chain has massive implications for economies around the world. Sure, it’s easy to imagine thirst after hunger. After all, agriculture uses a whopping 70% of the world’s freshwater. However, there are numerous industries -- and, thereby, economies -- suffering in the face of climate change. Below are some unexpected ways that climate change and the resulting issues with water scarcity are impacting the globe.
Climate change impacts the financial world
Just weeks ago, for the first time in history, the Bank of Canada designated climate change as a major risk facing Canada’s economy. In fact, climate change was one of only six factors named a major threat to the leading nation’s finances. Its dangers are far from exaggerated.
Analysts pointed to the increase in, and unpredictability of, extreme, climate change-caused weather as a major source of financial peril. With tending to such events comes a massive financial burden, both in terms of the equipment and labor used and the time that people lose being unable to reach their offices to work.
Additionally, analysts pointed to the lack of knowledge about climate risks in financial markets as a potential trigger for future economic catastrophe. For example, the lack of Canadian regulation on a company’s need to disclose their carbon emissions can lead to overpricing of, and therefore economic strain on, the processes, materials, and systems involved in transitioning Canada to a low-carbon economy.
Climate change hampers clothing production
The textile industry’s carbon footprint is surprisingly massive, and it relies deeply on water for its economic stability. As climate change exacerbates the global water crisis, it puts a large strain on the textile industry: By some reports, 2,700 liters of water is used in the manufacturing of one cotton t-shirt. Such a massive volume of water seems trivial and almost wasteful as many go without.
Clothing production and sales comprise trillions of dollars in the global economy, so climate change’s negative impacts on textiles will have no small effect on the world. As water scarcity worsens, the textile industry will struggle even more to balance its costs and revenue. Furthermore, with the vast expansion of fast fashion and the ever-increasing number of smaller, niche brands, the industry requires regular investments from those looking to fund new businesses. If the textile economy crumbles under the strain of water scarcity, investor dollars may never be repaid.
Climate change burdens the energy industry
The greenhouse gas emissions that the energy industry generates may well be the world’s greatest contributor to climate change. Energy production, distribution, and use is nevertheless the cornerstone of modern society, and although climate change is a major driver of the global water crisis, water is crucial to global energy systems. In fact, the energy industry uses the second-most water of any industry, right behind agriculture.
In the United States, for example, more water is devoted to oil refinement (a key step in fossil fuel production) than to any other purpose, including agriculture and meeting human sustenance needs. Water is also vital to the extraction of natural gas, which powers stoves and radiators across the world. The increase in water scarcity that climate change causes can thus be crippling for the energy sector, which accounts for eight percent of American GDP. Many of the world’s most prominent investors have made their fortunes in energy, and as the source of their wealth becomes less profitable, their investments and finances can become imperiled.
How Oxydus combats climate change and water scarcity
At Oxydus, we have an unparalleled vision for climate change combat that, though futuristic, requires urgent implementation. Our AWG factory would turn air into potable drinking water in massive quantities and distribute this water to the regions most in need. Our factory would pave the way for water production at a scale that can properly combat the ever-growing global water crisis and replenish the water supply for industries in need.
As you can see from this article, the demand for water will never falter. Our AWG factory can reverse the negative impacts that the global water crisis is exerting on the economy. Investing in solutions as simultaneously radical and realistic as ours will be key to combating climate change, not to mention offering loans that can actually be returned. Click here to visit the Oxydus Wefunder page and learn how you can contribute to a permanent infrastructure that could help to provide clean water for all.