WEF gives wake-up call for climate change risks

LONDON: The world is paying the price for failing to prepare for pandemics, the World Economic Forum (WEF) has said, as it urged countries to wake up to the risks of climate change.

The latest global risks report from the organisation behind the Davos conference of business leaders and politicians warns environmental crises pose the greatest threat to the world in the next decade.

And it highlights the consequences of ignoring long-term risks, with the annual risk report from the non-profit economic think tank sounding the alarm over the threat of pandemics since 2006.

That threat became a reality in 2020, the think tank said, with Covid-19 claiming millions of lives and widening long-standing health and economic disparities.

It has also increased the gap between “haves” and “have nots” when it comes to technology and digital skills, and raised the risk of a lost generation of young people.

Infectious diseases and livelihood crises are now seen as the top immediate risks in the next two years by those quizzed in a survey of business, government and social leaders for the report.

In the next three to five years, respondents expect the world to face knock-on economic and technological risks, including debt crises.

But environmental risks are expected to dominate in the next five to 10 years, with extreme weather, a failure on climate action, environmental damage wreaked by people and biodiversity loss all among the top five most likely threats.

Environmental crises are also seen as among those having the greatest impact.

Climate change continues to be a “catastrophic risk”, the report says, even as global cooperation weakens, and it warns that a shift towards greener economies cannot be delayed until the shocks of the pandemic subside.

Launching the report with Marsh and Zurich Insurance Group, World Economic Forum managing director Saadia Zahidi acknowledged it was difficult for governments and businesses to address long term risks.

“But the lesson here is for all of us to recognise that ignoring them doesn’t make them less likely to happen,” she said.

“As governments, businesses and societies begin to emerge from the pandemic, they must now urgently shape new economic and social systems that improve our collective resilience and capacity to respond to shocks while reducing inequality, improving health and protecting the planet.”