Jakarta – Global warming is now seen as a serious threat that could trigger a massive economic contraction. According to Jeffrey Hendrik, Development Director of the Indonesia Stock Exchange (IDX), on Monday, September 30, without effective mitigation measures against climate change, the impact on the global and national economies could be very significant.
“If we do not act immediately, and the earth’s temperature rises to 3.2 degrees Celsius, economists estimate that the global economic contraction could reach 23 per cent,” Jeffrey said at the National Seminar on Responsible Economic Development.
According to him, the impact of global warming could be greater than that of the COVID-19 pandemic, which “caused a global economic contraction of about three per cent…. global warming has the potential for a much greater impact.”
Jeffrey also reminded us that many economic actors have not realized the magnitude of the threat posed by global warming. They often conduct business as usual without taking into account the risks of rising global temperatures.
“Global warming is often ignored, even though the impact on economic stability can be huge. We need to act before it’s too late,” he said.
Ecosystem damage and social impacts
According to Jeffrey, rising temperatures will affect the economy and cause serious damage to ecosystems. He cited the potential for biodegradation, an increase in disease outbreaks, and the further risk of major cities like Jakarta being submerged by rising sea levels.
“If the Earth’s temperature rises by 3.2 degrees Celsius, many ecosystems will be disrupted, which in turn triggers wider impacts such as environmental damage, the emergence of disease outbreaks, and the threat of sinking big cities like Jakarta,” he explained.
With this threat, Jeffrey calls on businesses and governments to be more aware and act in the face of climate change.
“This challenge is our shared responsibility. Without decisive mitigation measures, the impact can be very broad for the economy and human survival on earth,” he concluded.
The seminar is expected to raise collective awareness among economic actors to play a more active role in supporting climate change mitigation efforts and minimizing the impact of global warming. (Hartatik)
