IOBE study: Climate crisis eating away at Greek GDP

Climate change will cost the economy more than €700 billion by 2100 if no measures are taken, according to a study by the Foundation for Economic and Industrial Research (IOBE) which suggests that tax incentives should also be given to companies investing in green actions.

“Adaptation to Climate Change: Challenges and Prospects for the Greek Economy” was prepared by IOBE and presented by the Bank of Greece on Tuesday.

“Climate change cannot be a footnote in economic policy,” said IOBE General Director Nikos Vettas, arguing that adaptation to climate change can be a growth opportunity, accelerating the use of national and European resources and creating added value and jobs.

The study highlights the importance of climate change adaptation measures – in other words, protection from its impacts – which should be promoted alongside those for mitigation.

Investments in infrastructure such as dams, but also in better insulation of homes and crop rotation should be promoted in parallel with measures to reduce greenhouse gas emissions.

Of the $632 billion invested globally in 2020 to combat climate change, 90% is for mitigation and only 7.2% for adaptation.

“Climate change is perhaps the most important threat to the sustainability of our societies,” warned Yannis Stournaras, governor of the central bank, which has been systematically working on the issue since 2011, having set up the interdisciplinary Committee for the Study of the Effects of Climate Change (EMEKA).