Brazil is in a strong position to source more renewable
energy as almost half of its energy supply, including over 80%
of its electricity, already comes from renewables, compared with
world averages of between 15% and 27%, the report added.
"To take full advantage of its (low carbon) potential,
Brazil would need net investments of 0.5% of its annual GDP each
year between now and 2050," said Johannes Zutt, World Bank
Country Director for Brazil, noting climate shocks could push
between 800,000 and 3 million Brazilians into extreme poverty by
the end of the decade.
In a report last November, the World Bank said "climate
change poses a major threat to long-term development objectives,
especially poverty reduction." It has released numerous reports
detailing costs to countries around the world and suggesting
mitigation efforts.
The report on Brazil mentions a study produced by the
Inter-American Development Bank (IDB) which suggests that Brazil
may soon reach a tipping point beyond which the Amazon basin
would no longer have enough rainfall to sustain ecosystems and
ensure water supply and carbon storage.
In the most extreme case, with a combination of climate
change, deforestation, and expansion of pasture areas, the
cumulative impact on Brazil's GDP by 2050 is estimated at $184
billion, equivalent to 9.7% of the country's current GDP.
The World Bank says the social and economic impact of this
disruption would be high, with "serious consequences for
agriculture, water supply in cities, flood mitigation, and
hydroelectric power generation."
The effects of climate change are already being felt in the
country through changes in temperature patterns and rainfall,
according to the report, adding that extreme weather events in
Brazil cause losses of $2.6 billion a year on average.
Mudslides and major floods brought about by heavy rains have
become more common in Brazil in recent years, underlining a lack
of urban planning in low-income neighborhoods throughout much of
the country, where shantytowns are often built on hillsides
prone to collapse.
Following the administration of former president Jair
Bolsonaro, who slashed environmental protection efforts in the
Amazon, President Luiz Inacio Lula da Silva took office this
year with the promise of putting such efforts back on the
government agenda.
(Reporting by Bernardo Caram; Writing by Steven Grattan;
Editing by Andrea Ricci)
By Bernardo Caram
BRASILIA, May 4 (Reuters) - Climate shocks could push
millions of Brazilians into extreme poverty by 2030, a report by
the World Bank on Thursday said, urging the country to
accelerate investments towards renewable energy sources.
The poorest of the South American nation would be affected
by natural disasters, especially floods and droughts, rising
food prices and reduced labor productivity, the report says.
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