Daily Briefing Industrials Policy and Regulation.
[…] Supply chain security
Indeed, a report this week from think-tank Bruegel raises the need to deal with the effects of a warming world on supply chains. Climate events such as wildfires, flooding, heatwaves and droughts can have “cascading effects” on the global economy, disrupting production lines and affecting critical infrastructure and trade routes, it says.
China’s industrial heartland is locked down today as it awaits the arrival of Super Typhoon Ragasa. Research frequently shows climate change increasing the wind speeds and rainfall of typhoons.
Bruegel recommends using public policy to promote private investment in infrastructure that strengthens industries’ resilience to climate-related disruptions, such as improvements to countries’ ports and canals. They also call on governments to encourage the private sector to diversify their input sources and supply chain routes to secure supplies of essential products and services against climate hazards. […]
The full Financial Times’ Sustainable Views newsletter can be found here (paywall): https://www.sustainableviews.com/editors-note-coming-undone-at-the-seams-54551910/
