This article was from Bloomberg Businessweek and was published on 11/13/2020. It speaks to the future challenges climate change can pose to the global economy and the danger of delaying significant reduction of carbon emissions.
One difficulty regarding managing in a global economy is balancing short term success with long term success and global implications of decisions made in the short term. While most countries in the world would agree that environmental sustainability is crucial and needs to be made a priority, taking actions to preserve the environment are not often attractive in the short term. For example, economic powerhouses like the U.S. and China want to establish themselves as the leader in the global economy. In the current economic environment, that means, in part, focusing on manufacturing, trade, and obtaining resources, all of which require significant carbon emissions. As explained in the article, delaying a global prioritization on green policies will only increase the impact of climate change on the global economy in the long run. Rising temperatures could cause issues such as increased natural disasters and decreased average productivity, both of which would negatively impact global GDP. Conversely, if we act now and increase focus on renewable energy sources, we can help calm the storm.