The recently released 18th Edition of the Global Risks Report by the World Economic Forum (WEF) provides an in-depth insight into the imminent risks our world is grappling with. The report has been unveiled ahead of the much-anticipated Davos 2023 Meeting, named “Cooperation in a Fragmented World”. In this article, we delve deeper into the key findings of the report and discuss the complex challenges posed by climate change, biodiversity loss, and more.
The Key Findings of the Report
The Global Risks Report 2023 identifies ‘Failure to Mitigate Climate Change’ and ‘Failure of Climate Change Adaptation’ as the two most significant threats facing the globe over the next ten years. These are closely followed by ‘natural disasters and extreme weather events’, and ‘Biodiversity loss and ecosystem collapse’.
Presently, the atmospheric concentrations of carbon dioxide, methane, and nitrous oxide have surged to unprecedented levels. The alarming emission trajectories make it highly improbable that global goals to limit warming to 1.5°C will be attained.
Climate Action and Biodiversity Loss
Despite three decades of global climate advocacy and diplomacy, the world continues to struggle to achieve necessary strides in climate change. The failure to address climate change remains consistently among the top risks since 2011. While ‘Biodiversity loss and ecosystem collapse’ is not perceived as a short-term concern, it stands as the fourth most severe risk in the long term or the next ten years (by 2033).
Progress Reversal in Climate Mitigation
Growing demands on public and private resources due to socio-economic short-term crises and geopolitical tensions could reduce mitigation efforts’ pace and scope in the coming years. Some actions have even led to reversed progress on climate change mitigation. Examples include the European Union’s significant expenditure on new and expanded fossil-fuel infrastructure and supplies, and the restarting of coal power stations by Austria, Italy, the Netherlands, and France.
Concerns and Threats
By 2033, the interconnectedness of biodiversity loss, pollution, natural resource consumption, climate change and socioeconomic factors may create a hazardous combination. The current global pandemic, combined with the war in Europe, has caused havoc in energy, inflation, and food sectors, making ‘cost of living’ the most severe global risk in the short term (over the next two years). The failure to mitigate climate change also poses a significant global risk, with 70% of respondents in the WEF report considering existing preventive measures as “ineffective” or “highly ineffective”.
Understanding Global Risk
Global risk is defined as an event or condition that, if occurred, would negatively impact a significant portion of global gross domestic product, population, or natural resources. The Global Risks Report is an annual publication offered by the World Economic Forum prior to its Annual Meeting in Davos, Switzerland. The report presents an overview of the changes in the global risks landscape from year to year.
About the World Economic Forum
The WEF, established in 1971, is a Swiss nonprofit foundation based in Geneva, Switzerland. Recognized by the Swiss authorities as an international institution for public-private cooperation, it aims to improve the state of the world by involving leaders from business, politics, academia, and other societal sectors to shape global, regional, and industry agendas. Founded and chaired by Klaus Schwab, WEF publishes crucial reports like Energy Transition Index, Global Competitiveness Report, Global IT Report, Global Gender Gap Report and Global Travel and Tourism Report.
