Climate Change: Legal, Financial, Economic and Risk Management Issues

By Tapen Sinha

Human activities have accelerated the process of climate change. Since dealing with climate change requires collective action across countries and across regions, their often-divergent incentives make such action difficult to achieve. Our only remaining option is to take collective global action through adaptation and mitigation.

Climate change is a fact of life in the 21st century. The contribution of human beings accelerating this climate change through the emission of greenhouse gases is undeniable. What is less understood is that climate change will not affect all countries and all regions in the same adverse way. The impact on the low and middle-income countries will be harsher than the countries that are already developed. As a result, the so-called “North-South Divide” will get larger. This fact also explains why some countries are less concerned about climate change than others. While developing countries (largely in the South) are more likely to be hit by climate change, they are also the countries likely to produce more greenhouse gases per capita because they lack the technology and resources to effectively deal with these gases.

What can be done about climate change? Can we take mitigating and adaptive measures? The answer is affirmative. To understand this, we need to delve into legal, financial, economic and risk management perspectives.

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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.