The Impacts of Climate Change on Industries and Financial Fragility

Abstract

The interaction of climate change and financial fragility is set to challenge States’ abilities to manage their economies. This article examines the configurations of industries for selected countries, revealing the vulnerabilities where climate change will have the severest impacts. The use of the foundational economy concept facilitates an analysis of financial fragility by isolating activities in national accounts data which contribute to human needs. Improvements in the satisfaction of human needs will require innovative State initiatives, including ways to lighten sovereign debt burdens to free funding for new programs. A Universal Basic Services scheme is a promising initiative.