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Effects of climate crisis worse than pandemic, says Sri Mulyani

Tempo - September 15, 2022
Nabila Nurshafira, Jakarta – Minister of Finance Sri Mulyani in the HSBC Summit on Wednesday said the climate crisis the world population faces will have a lasting effect far worse than the Covid-19 pandemic if not handled correctly. She insists on immediate action as the climate crisis threatens the livelihood of people and causes economic turmoil.

"We all understand that climate change is a global threat that reaches humanity, economy, financial system, and our way of living much more than the Covid-19 pandemic," said Mulyani.

Citing research published by an institute from Switzerland in 2021, Sri Mulyani explained that climate change could cost the world more than 10 percent, thus creating huge losses to the economic sector if the 2050 agreement in Paris is not met.

The former World Bank Managing Director said this situation not only had an impact on people's social lives but also on the economy as a whole. "Indonesia's GDP could lose 0.63% to 45 percent in 2030," she said.

She also said that gradually, inflation will arise due to disruptions to national and international supply chains due to weather changes such as floods, storms, and droughts.

Sri Mulyani said that the government has committed to dealing with climate change through the Paris Agreement by reducing 29 percent of CO2 emissions and trying to reduce 41 percent with international support by 2030.

However, Sri Mulyani said that Indonesia needs time to finalize plans to implement policies that were formed due to climate change concerns.

Source: https://en.tempo.co/read/1634428/effects-of-climate-crisis-worse-than-pandemic-says-sri-mulyan