Wooing foreign investors? Heat resilience may be a new key factor for cities
Failing to adapt to higher temperatures could mean lower agricultural yields and labour productivity, as well as poor energy security
THE heat resilience of a city is set to be an increasingly crucial factor for foreign investors – in a sign of how climate adaptation is a growing economic priority for policymakers.
“When multinational companies make decisions about the location of new investments, the host country’s exposure to heatwaves and its energy reliability are going to be increasingly a key consideration factor,” said economists from HSBC Global Research in an Aug 30 report.
The authors highlighted three key economic impacts of heatwaves: lower agricultural output, diminished labour productivity, and greater occurrences of power outages, which can cause major disruptions to industries and hit a country’s energy security.
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