The World Bank warned on Friday that if Kenya does not take decisive steps to adapt to climate change and lessen its consequences, it might lose up to 7.25% of its economic output by 2050.
The East African country has been experiencing protracted droughts and other consequences of global warming, much like other so-called frontier economies.
“A failure to address climate change could lead to a 3.61–7.25 percent real GDP decline by 2050,” the World Bank stated in a recently released report titled Kenya Country Climate and Development Report.
It stated that “a higher annual growth rate and structural transformation could partially buffer the impact of climate change on the economy.”
Assuming Kenya’s economy expands at the government-targeted 7.5% annual rate until 2050, the paper projects that the economic output harm caused by climate change would decrease to 2.78–5.3%.
To lessen the effects of climate change, it urged more expenditures in agriculture, digital systems, energy, transportation, and water resource management.
According to the research, Kenya is in an excellent position to offer solutions to other nations wanting to reduce their emissions because over 90% of its power comes from renewable sources, including geothermal wells and hydro-generation.
“If Kenya maintains a low-carbon growth path, it could seize opportunities created by the global decarbonization trend and create green jobs,” it stated.
Even if it costs up to $2.7 billion to build a carbon-free electrical grid by 2030, the analysis predicts that lower fossil fuel prices will eventually pay for the costs.
It also encouraged the government to expand the scope of projects that qualify for financing to make climate initiatives national and bankable.
“Finance directed toward climate in the development budget disproportionately targets the renewable energy sector,” it stated. “Agriculture, forestry and land use, transport, water management, and other key sectors are significantly underfunded.”
