Mains Daily Question
Feb. 23, 2024

Q3. How does the economic impact of climate change influence national development strategies? What policy measures can be implemented to address these challenges, ensuring sustainable and inclusive growth?(10M, 150W)

Model Answer

Approach:  Break down the question into sub-parts and then answer each part individually.

Introduction: Introduce with data on the economic impact of climate change


Sub-Heading 1: Economic influence of climate change on national development strategies

Sub-Heading 2: Policy measures undertaken to address these challenges 

Conclusion: The way forward for climate change negotiations 


Climate change poses significant economic challenges, impacting various sectors and hindering sustainable development. According to UNEP’s Adaptation Gap Report 2023 the modeled costs of adaptation in developing countries are estimated at US$215 billion per year this decade. Despite these needs, public multilateral and bilateral adaptation finance flows to developing countries declined by 15 per cent to US$21 billion in 2021. 

This highlights the urgency to understand and address the economic implications of climate change.


Economic influence of climate change on national development strategies:

    • Agriculture and Food Security: Climate change directly impacts agricultural productivity due to altered rainfall patterns, increased temperatures, and more frequent extreme weather events. Developing countries, heavily reliant on agriculture, face heightened risks of food insecurity and loss of livelihoods, necessitating a shift in development strategies towards climate-resilient agricultural practices.
      • The Food and Agriculture Organization (FAO) estimates that global crop yield could decline by up to 25% by 2050 due to climate change. 


  • Health Costs: The World Health Organization (WHO) estimates that between 2030 and 2050, climate change could cause approximately 250,000 additional deaths per year, from malnutrition, malaria, diarrhea, and heat stress. The economic cost of these health impacts is projected to be between USD 2-4 billion per year by 2030. 


  • Infrastructure and Urban Development: Climate change necessitates reconsideration of infrastructure development strategies, particularly in urban areas prone to flooding, sea-level rise, and extreme heat. Increased disasters due to climate change will create concerns for climate refugees. 
    • The Asian Development Bank (ADB) reports that the cost of ensuring infrastructure is resilient to climate change in Asia and the Pacific could be about $1.7 trillion per year until 2030. 
  • Water Resources Management: Climate change exacerbates water scarcity issues, impacting not only drinking water supply but also water availability for agriculture and industry. 
    • The United Nations World Water Development Report notes that by 2050, up to 5.7 billion people could be living in areas where water is scarce for at least one month a year, creating urgent demands for national strategies focused on water efficiency and sustainable management.
  • Tourism: Regions dependent on tourism face economic challenges due to climate change, as natural attractions (e.g. coral reefs, ski resorts) are directly impacted, requiring countries to diversify their economies and invest in sustainable tourism practices.

Policy measures undertaken to address these challenges:


  • Carbon Pricing , Carbon Tax and Emissions Trading Systems (ETS): According to the World Bank, as of 2021, about 64 carbon pricing instruments have been implemented or are scheduled for implementation globally.
  • For example : The European Union's Emission Trading System (EU ETS), the world's largest carbon market, has been instrumental in reducing the EU's emissions by about 35% below 2005 levels in ETS sectors.


  • Energy Efficiency Standards and Building Codes: The International Energy Agency (IEA) notes that energy efficiency measures can contribute to over 40% of the emissions reductions needed to meet global climate goals. 
    • For example : Japan has implemented the Top Runner Program, which sets progressively higher energy efficiency standards for appliances and vehicles, driving innovation and market shifts towards more efficient products.
  • Afforestation and Reforestation Initiatives: Trees play a crucial role in carbon sequestration, and policies promoting afforestation and reforestation are vital. 
    • For example : The Bonn Challenge, launched in 2011, is a global effort to restore 350 million hectares of degraded and deforested lands by 2030. 
  • Climate Adaptation and Resilience Building: Recognizing the importance of adaptation, the Global Commission on Adaptation calls for increased investment in adaptation solutions. The Climate Risk and Early Warning Systems (CREWS) initiative helps vulnerable countries build early warning systems to protect populations from climate-related disasters. 
    • Bangladesh's Comprehensive Disaster Management Programme is an example of integrating climate resilience into national development, focusing on improving early warning systems and disaster preparedness.
  • International Cooperation and Agreements: International agreements such as the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC) set global targets for reducing emissions and increasing resilience. Nationally Determined Contributions (NDCs) are central to the Paris Agreement's implementation, where countries outline their plans for emission reductions and adaptation measures.


India's comprehensive approach, characterized by a blend of policy initiatives(NAPCC, ISA, Green Energy Corridors Project, Push for renewables and electrification) and ambitious targets(achieving >500 GW of renewable energy capacity by 2030), demonstrates a strong commitment to tackling climate change while pursuing sustainable development. 

Need today is for international cooperation that can formulate a certain policy , generate funds and address issues of climate justice keeping at center the cherished principle of combined but differentiated responsibilities according to respective capabilities (CBDR-RC) of nations.

Subjects : Environment
Only Students can submit Answer.