Lloyd’s is hosting a conference on climate change in Brazil today.  We have sponsored a report:  ’Climate change and Extreme events in Brazil‘ written by leading Brazilian climate experts to consider the impacts of climate change on Extreme weather risks, Energy, Agricultural Production and Sea level rise.

The report highlights that climate change is being felt already in Brazil.  In Southeast Amazonia, river flows have slowed or even stopped altogether on some occasions impacting navigation and trade; and causing forest fires leading to airport closures.  The link between climate change and economic impacts is clear. 

Over the coming decades a variety of impacts are likely to arise; many of which we are only beginning to understand.  The Amazon may dry out under some projections; if this happened it is likely to affect the climate around the world.    Extended dry periods would reduce the efficiency of hydro power stations – the dominant source of electricity in Brazil.  Strong winds, like those produced by Hurricane Catarina the first recorded tropical cyclone in the South Atlantic, may damage electricity transmission lines.

Only yesterday, the BBC reported that a severe storm caused widespread power cuts which lasted more than five hours, and left up to a fifth of Brazilians without power.

 Agriculture is responsible for 30% of Brazil’s GDP.  The majority of crops will see a reduction in yield as their potential cultivation area is reduced when conditions become unfavourable for them, though sugar cane may see an increase in yields.  This will create a strong impetus to genetically engineer crops to become tolerant of the new conditions; this brings its own risks as discussed in our Emerging Risks report on Synthetic Biology

The city of Recife is shown to be one of the most vulnerable to sea level rise, with over 80% of its buildings within 30m of the sea.  Yet the report warns that adaptation will only come if the public become engaged with the issue and highlights a number of ways this could be achieved.

We hope this new report, and the conference will lead to further debate on climate change between academics, businesses, policymakers and the public in Brazil.  To tackle climate change we must work together; that message is as true in South America as anywhere.

This entry was posted by Trevor Maynard on Thursday, November 12th, 2009 at 10:28 am and is filed under Exposure Management.