Climate Change as an Economic Conflict Factor
Planetary security refers to the role of the environment in geopolitical risks and conflicts. As a relatively underexplored concept, this report, intended for policy makers and business professionals, examines the economic aspects of planetary security and, in particular, the vulnerabilities and resilience of countries to environmentally induced conflict. It first discusses the concept of planetary security and the role of economics therein, and then builds a quantitative framework and monitor capturing the vulnerabilities and resilience of different countries.
The report, by the Clingendael Institute and HCSS, distinguishes between direct economic effects of climate change on countries, unintended economic effects of climate change policies and effects of climate change on business and financial sectors. While the first two elements are captured in the monitor and quantitative framework, the third element– the effects of climate change on business and financial sectors – could not yet be modelled in the monitor. This report therefore discusses the links between the economics of climate change and international conflict risk, which are brought together under the title ‘economics of planetary security.’