According to research released on Monday, China is home to 16 of the world’s 20 most vulnerable regions to climate change, with some of the world’s most major manufacturing hubs threatened by rising water levels and harsh weather.
Florida was named the most susceptible region outside of China.
Climate risk specialists XDI examined over 2,600 places around the world, using climate models in conjunction with weather and environmental data to estimate the economic damage that temperature rises could cause by 2050.
The analysis assumes a 3°C (5.4°F) increase in temperatures by the end of the century, based on a scenario developed by the UN Intergovernmental Panel on Climate Change.
According to the statistics, some of the global economy’s engine rooms face catastrophic hazards like as increasing sea levels, river flooding, and wildfires, which might depress property prices and hinder investment, according to XDI.
Jiangsu, a heavily industrialised Chinese coastal province that accounts for a tenth of China’s GDP, was named the world’s most susceptible territory, followed by adjacent Shandong and the significant steel production base of Hebei. Henan, a flood-prone central province, came in fourth place.
According to Hamden, the migration of global production to Asia has resulted in a significant increase in infrastructure investment in already vulnerable places around China, making it more vulnerable to the effects of climate change.
“Infrastructure investment has tended to be concentrated in historically high-risk places – river deltas, coastal zones, and generally flat areas,” he said.
Florida ranked 10th among non-Chinese regions, with California 19th, Texas 20th, and New York 46th. Nine Indian territories were also in the top 50.
While climate change is likely to become more influential in deciding capital flows, it remains to be seen whether it would inhibit investment in more susceptible locations, according to Karl Mallon, co-founder of XDI.
“There is much effort to be done to determine which portions of the world are possibly adaptable and defendable, and which are likely to be abandoned in due course,” he said.