BT Explains: How to price climate risks and opportunities

By virtue of its geographical location, Singapore's economy is expected to be the hardest hit globally if the earth warms up 3.2 degrees Celsius by mid-century.

This is according to a Swiss Re Institute study, which also projected that the island nation’s gross domestic product (GDP) may shrink up to 46.4 per cent under the scenario, while the world’s biggest polluter, China, is likely to see a 23.5 per cent fall at most.

Among regions, the most exposed is Asean - where a 37.4 per cent fall is estimated, versus a world average of 18.1 per cent. Asean is still less exposed under the more conservative 2-degree scenario.