HSBC: Australian economy badly exposed to climate

As Prime Minister Tony Abbott continues his campaign to wind back climate change policies and institutions, a new report has highlighted how Australia has suffered the most dramatic increase in climate vulnerability of any G20 country in the past two years.

The assessment by climate change analysts at investment bank HSBC – released ahead of the IPCC report later this week – says Australia has recorded the biggest increase in temperatures of any G20 country, the second worst deterioration in water availability, and has the second higher cost per GDP from extreme weather events.

Australia’s ranking among G20 nations most vulnerable to climate change has plunged 5 places from 10th to 5th in the last two years, leapfrogging Indonesia, China, Mexico, Italy and South Korea

The top three countries exposed to temperature changes, water stress and extreme events remain Saudi  Arabia, India and South Africa.

But Australia’s position has dramatically worsened since 2011 because it has recorded the biggest difference in temperatures among G20 nations, and the second worst deterioration in water availability behind the Saudis.

On another measure, sensitivity to climate change, Australia also ranks badly, second behind China.

Climate sensitivity means the degree to which a country can be affected by an extreme weather event both in humanitarian and in economic terms. Three criteria are measured: the number of deaths from weather events; the cost of the event in terms of GDP; and the number of people affected.

HSBC said that Australia pays the second highest cost per GDP (0.24 per cent) on extreme weather events, behind only China. And its overall sensitivity had worsened two places. In 2011, the Indian, Chinese and Russian economies were deemed to be the most sensitive to climate change. Now the top three three are China, Australia and Russia.

The one positive assessment for Australia came in HSBC’s assessment of the ability of each country to adapt to changes. Because of Australia’s strong economy, its low debt, its strong rule of law, lack of corruption and levels of tertiary education, Australia is considered to have the best capacity to adapt to these changes – ahead of other rich nations Canada, US and the UK.

HSBC said that a country with higher GDP and lower debt levels would be able to channel more available capital towards climate adaptation and “climate proofing” their country. “Where the “rule of law is strong, and corruption tends to be lower, and a higher rate of further education is in place, the potential for making positive behavioural changes among the general population is higher,” it notes.

That meant that on its assessment of overall vulnerability to climate change, Australia ranks as the14h most exposed country, slipping just one place. In effect, it has the resources to buy or build its way out of the worst impacts.

The country’s with the least ability to adapt are its neighbour to the north, Indonesia, and China and India.  These three countries remained the most vulnerable to climate change on the overall score.

“In terms of absolute vulnerability, our analysis shows that countries are becoming marginally more exposed to climate change: temperatures continue to rise, water resources are being depleted and extreme events are occurring,” HSBC writes.

“In our view, evaluating country vulnerabilities to the climate factor is a critical tool for risk management, informing both asset allocation and the understanding of pressures along global value chains.”

Ajax wrote on Sep 25^th, 2013 at 8:29pm:
On the economy, yes.

Ajax wrote on Sep 25^th, 2013 at 8:29pm:
The far greater proportion who support the IPCC's findings, I do.

Ajax wrote on Sep 25^th, 2013 at 8:29pm:
I don't pretend to be qualified to judge the science. What are your qualifications?

Ajax wrote on Sep 26^th, 2013 at 12:06pm:

No. That assertion reveals only your extreme ignorance.

As Dunning and Kruger proposed; for a given skill, incompetent people will:

1. tend to overestimate their own level of skill;
2. fail to recognize genuine skill in others;
3. fail to recognize the extremity of their inadequacy.

I've learned enough to recognise the complexity of climate science. I certainly don't know enough, nor am I fool enough, to believe that I know better than the vast majority of the best qualified.

BatteriesNotIncluded wrote on Sep 26^th, 2013 at 2:46pm:

What does UAH stand for Ajax ? 

You do know, don't you?

Vuk11 wrote on Sep 26^th, 2013 at 8:02pm:


The Working Group II Report is what you need. The final version isn't out until March next year. Here is the link for the relevant chapter from AR4: 

http://www.ipcc.ch/publications_and_data/ar4/wg2/en/ch11.html


I understand that AR5 will no longer consider the same range of emission scenarios.  Nobody can predict what the actual emission scenarios will be. That's the biggest stumbling block for predictions.

Chimp_Logic wrote on Sep 26^th, 2013 at 9:21pm:


Did you check out the links? It seems south Australia will be the biggest hit by the reduction in rainfall and they're predicting 10% decrease after the better part of a century. Whilst the top link about c02 and crop yields is looking at what looks to be 10-30% increase across all of Australia if levels hit 555ppm.

methinks vuk11 can't define what an economy is!!

Oh wait, vuk 11 is going to turn the question around and get everyone else to do his homework like daddy taught him to do... don't forget the wink hey vuk11... oh you can't do the dodgy wink over the internets oh all is suddenly lolville!!