Ministry of Economy and Finance (MEF) and the National Council for Sustainable Development (NCSD) launched a report on the “Modelling of Climate Change Impacts on Growth” on Friday 27th April 2018 at Ministry of Economy and Finance.
The report shows that climate change could reduce Cambodia’s GDP in 2050 by almost 10% (and GDP in 2030 by 2.5%). The main impacts are due to reduced productivity of workers because of temperature increases, followed by impacts of extreme events on infrastructures, both of which affect all key sectors of the economy. Reduced income due to loss of crops in agriculture is the third largest impact for the period between now and 2050.
The report also shows that improved policies and investment to adapt to climate change could avoid up to two thirds of the impact through a combination of policies to encourage private investment in adaptation, higher public spending on adaptation, and measures to improve the cost-effectiveness and climate-proofing of infrastructures.
H.E. Ros Seilava, Under Secretary of State, MEF, underlined that the model help to better assess impact of climate change on GDP. This research will inform rectangular strategy IV and Cambodia vision 2050. It should also inform important sector strategy such as industry policy.
H.E. Tin Ponlok, Secretary General of NCSD, mentioned that “this exercise and the combination of expertise between NCSD and MEF are boosting national capacity to conduct solid economic policy research on climate change, and inform Government priorities.” He emphasized key messages that the impact of climate change is very significant, but good policies combined with private and public investment and international finance could help to protect Cambodia’s economic growth from most of these impacts.
H.E. Maria Sargren, Ambassador of Sweden, pointed that the model shows that government and partner need to increase engagement to minimize climate change impact on growth. There is a role of private sector to invest climate proofing activities with the right policy incentive from government.
The launch was attended by representatives of key government ministries, development partners, NGOs and the private sector. The report was supported by the Cambodia Climate Change Alliance (CCCA) and the Regional programme on the Governance of Climate Finance with financing from Sweden, the European Union and UNDP.