Kenya is at risk of losing 7.25% of its GDP
The World Bank warned on Friday that if Kenya does not take decisive steps to adapt to climate change and lessen its consequences, it might lose up to 7.25% of its economic output by 2050.
The horn of Africa has been experiencing protracted droughts and other consequences of global warming, much like other so-called frontier economies.
“By 2050, inaction against climate change could result in a decline in real GDP of 3.61–7.25 percent,” the World Bank said in a new publication called Kenya Country Climate and Development Report.
“The impact of climate change on the economy could be partly buffered by a higher annual growth rate and structural transformation,” the report added.
Assuming Kenya’s economy expands at the government-targeted 7.5% annual rate until 2050, the paper projects that the economic output harm caused by climate change would decrease to 2.78–5.3%.
In order to lessen the effects of climate change, it urged for more expenditures in agricultural, digital systems, energy, transportation, and water resource management.
According to the research, Kenya is in a good position to offer solutions to other nations wanting to reduce their emissions because over 90% of its power comes from renewable sources including geothermal wells and hydro-generation.
“If Kenya maintains a low-carbon growth path, it could seize opportunities created by the global decarbonization trend and create green jobs,” it stated.
According to the analysis, even if up to $2.7 billion in expenditures would be needed to achieve a carbon-free electrical grid by 2030, the expenses will eventually be recouped by lower prices for fossil fuels.
In order to make climate initiatives national and bankable, it also encouraged the government to expand the scope of projects that qualify for finance.
“Finance directed toward climate in the development budget disproportionately targets the renewable energy sector,” it stated. “Agriculture, forestry and land use, transport, water management, and other key sectors are significantly underfunded.”
