Climate Change Impact and Structural Reforms in Kiribati slide image

Climate Change Impact and Structural Reforms in Kiribati

KIRIBATI CLIMATE CHANGE IN KIRIBATI: THE WAY FORWARD¹ Climate change represents a threat to many small island developing states like Kiribati. This note summarizes the main ways in which climate change may negatively affect the economy of Kiribati. It then shows how Kiribati may cope with these negative effects by implementing adaptation projects, as well as by contributing to global mitigation efforts. Finally, the note describes some issues related to climate finance and how authorities of Kiribati may direct their efforts in the most productive way to ensure that climate-related projects obtain the proper financial backing and are carried out to fruition in a timely fashion. A. Introduction 1. The negative effects of climate change threaten the future of the world economy. According to the latest Intergovernmental Panel on Climate Change AR-6 Report (IPCC, 2022), the negative effects of anthropogenic climate change have already started to materialize across the globe. The global average temperature will almost certainly rise to 1.5 degree Celsius above pre-industrial levels in the coming decades, even if the world economy were to implement policies to aggressively reduce carbon emissions starting from today. Accordingly, the risk of runaway climate change, which most scientists predict to occur if the global average temperature were to increase to and above 2 degrees Celsius above pre-industrial levels, is deemed very high. 2. Against this backdrop, small island developing states (SIDS) are in a precarious position. This is because their location and geographic features make them vulnerable to climate induced disasters like tidal inundation, tropical cyclones, droughts, and heatwaves. In addition, economies of SIDS are often heavily dependent on natural resources, for instance groundwater and fisheries, which could be negatively affected by some of these novel natural processes associated to climate change like sea level rise. Finally, the size and current development of their economies hinder efforts both to adapt and to recover from natural disasters. 3. Global changes in weather patterns may lead to a host of hazards for Kiribati, albeit a great deal of uncertainty remains in model-based projections of risk. A rising global average temperature naturally leads to more frequent occurrence of dangerous heatwaves, including marine heatwaves-periods of abnormally high sea temperature-which intensify and lead to severely negative effects on marine ecosystems within Kiribati's exclusive economic zone. Droughts on the atolls of Kiribati are primarily meteorological, meaning that they reflect a prolonged lack of rainfall and thus require projections of future precipitation patterns. Finally, inundation and windspeed damage from storms, while historically not affecting Kiribati as harshly as other SIDS, are tightly linked to future evolution of tropical cyclone tracks, a field in which more research is needed. I Prepared by Michele Fornino (STA), Anh Thi Ngoc Nguyen (APD), Cristian Alonso, and Joel Kilpatrick (both FAD). The note benefitted from inputs and discussions with Natalija Novta (APD). 4 INTERNATIONAL MONETARY FUND
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