makes human-caused climate change so potentially catastrophic and difficult to deal with.
Here is Lloyd’s summary of the impact of this shock:
Wheat, maize and soybean prices increase to quadruple the levels seen around 2000. Rice prices increase 500% as India starts to try to buy from smaller exporters following restrictions imposed by Thailand. Public agricultural commodity stocks increase 100% in share value, agricultural chemical stocks rise 500% and agriculture engineering supply chain stocks rise 150%. Food riots break out in urban areas across the Middle East, North Africa and Latin America. The euro weakens and the main European stock markets lose 10% of their value; US stock markets follow and lose 5% of their value.
These food price hikes are in line with a 2012 Oxfam study, which projected that global warming and related extreme weather will combine to create devastating food price shocks in the coming decades, with the potential for corn prices to increase a staggering 500 percent by 2030.
As for the political impacts, those are a straightforward extension of what has already happened. As The Economist explained back in February 2011 during Arab Spring, “The high cost of food is one reason that protesters took to the streets in Tunisia and Egypt.”
So how likely is this scenario to play out? Lloyd’s of London doesn’t give a specific probability, but notes chillingly:
“What is striking about the scenario is that the probability of occurrence is estimated as significantly higher than the benchmark return period of 1:200 years applied for assessing insurers’ ability to pay claims against extreme events.”
So we can sit on our hands waiting for this scenario to play out in real life — or we can act strongly and swiftly with the foresight science gives us to 1) slash carbon pollution ASAP to minimize its chances of occurring and 2) start doing serious adaptation to minimize its impact when it does. It isn’t really that hard a choice.