A recent report by the World Bank highlights that North Macedonia could face economic losses amounting to 4% of its GDP by 2050 due to the adverse effects of climate change. This alarming forecast was presented in the Country Climate and Development Report (CCDR) on October 8, 2024, in Skopje, emphasizing the urgent need for climate adaptation investments totaling approximately US$6.4 billion over the next decade [5f4c193e].
The report underscores the vulnerability of small family farms in North Macedonia, which have already suffered significant damages, amounting to US$667 million from floods and extreme weather events over the past 20 years [5f4c193e]. Massimiliano Paolucci, the World Bank Country Manager, pointed out that the agricultural sector is particularly at risk, necessitating immediate action to bolster resilience against climate impacts [5f4c193e].
To combat these challenges, the report advocates for a transition to net-zero emissions by 2050, which would require the installation of 6.9 GW of renewable energy capacity and the electrification of 90% of passenger vehicles [5f4c193e]. Furthermore, fiscal reforms, including the implementation of carbon pricing, could potentially generate EUR 730 million annually to fund green initiatives, as noted by Sanja Madzarevic-Sujster, the lead author of the report [5f4c193e].
This call for action aligns with broader global efforts to address climate change and its economic ramifications. As countries worldwide navigate the transition to a climate-neutral economy, the findings from North Macedonia serve as a critical reminder of the localized impacts of climate change and the necessity for tailored policy interventions to mitigate risks and foster sustainable development [5f4c193e].
In the context of a global economic landscape increasingly influenced by climate factors, North Macedonia's situation exemplifies the urgent need for coordinated efforts to adapt and invest in resilience. The interplay between climate policy and economic stability will be crucial as nations strive to balance growth with sustainability in the face of climate challenges.