“physical” risks for the financial sector could be explained more. The last sentence of the first paragraph – perhaps consider refinement or explain this more in the main assignment. Aim to include...

EXECUTIVE SUMMARY
This research report intends create a detailed understanding on the effects of climate changes on the world economy. A detailed mapping of the information’s that are collected from a wide range of resources is conducted over variety of heading to examine the different climatic changes, how these causes threats to the business environment, how these threats can be minimized or optimized, the actions of the apex authority that is the central bank over the issues. We intends to make an analysis and through light to the plausible alternatives to overcome the existing conditions. Finally the report reaches an end on making a conclusion and recommendation on how to draft the future plans based on the research outcomes.
INDEX
1. EXECUTIVE SUMMARY
2. INTRODUCTION
3. CLIMATIC CHANGES AND ITS RISING THREATS ON THE ECONOMIC SYSTEM
4. SCOPE OF CENTRAL BANKS
5. REGULATIONS IMPLEMENTED BY CENTRAL BANK
6. EFFECTIVENESS OF GREEN QUANTITATIVE EASING PROGRAM
7. RECOMMENDATIONS
8. CONCLUSION
9. REFERENCES
INTRODUCTION
Economic system can be defined as a mechanism that helps in the allocation and distribution of resources, services and commodities across the country. In a global point of view it can be described as the system that makes a balance between income and the expenditure and the allocation of the available resources in the world economy. The balance in this economic system is of greater importance as it helps to maintain equity in the wealth and resource distribution in the economy. In the recent times an increasing trend has been noticed that the climate changes are impacting negatively on a larger extend on the economic system of the world. In this report we could make a detailed analysis on the climatic changes, reasons for these changes and how these changes are going to make an impact or pose a threat on the economic system. Later on the central banks plans to mitigate these threats are discussed on and conclusions are reached on the existing implemented plans and recommendations on the future strategies are also drawn.
CLIMATIC CHANGES AND ITS RISING THREATS ON THE ECONOMIC SYSTEM
Climatic conditions that exist in a country can be treated as a major factor that determines the productivity of the human resources in that country. The productivity of the human resources is directly related to the profits and the financial stability of the business and industries working in that country and also seriously affects the economic system in existence. In recent years a trend has been observed that the climatic conditions that are existing in our economy has been changing drastically which shows that a tremendous change of already experiencing climate.
The reasons that cause a change in the cu
ent climatic conditions are the human activities that lead to the excess emission of greenhouse and other harmful gases and other activities leading to global warming and other natural calamities. In earlier times it was believed that these calamities could only seriously create an impact on the human wellbeing and their lifestyles. But in the recent studies it was observed that this has started to affect the functioning of the economy and the business classes too. In the following sections we can create a detailed analysis of how these climatic changes has been causing instability to the economic system.
The economic changes are the latest threat to the economic stability. This statement can be better understood by the effects of the climatic changes. Some of the recent conditions caused due to climatic changes are heat waves, hu
icanes, typhoons, cyclones, flood, drought, forest fires, rise in sea levels etc. As per our presumptions these were considered to affect only the human existence and could lead to lifestyle related diseases. But now we can see how these are going to make an impact to the financial sector of the economy. The temperature in atmosphere has exhibited an increase that in more than proportional over the years. The increase is too high when compared to the trend of increase over the past 10 years. This increasing temperature causes heat waves that makes it difficult to work during the day hours and thus leads to reduction in the productivity of the employees.
Hu
icanes, cyclones, typhoons and floods create a threat to life and wealth of a larger population in a fraction of time and thus leaving to absolute poverty and ruthlessly sweeping away their communities. Apart from washing away the human lives it also leads to huge losses to the business by loss of stocks, destruction of office spaces, building and godowns and also hindrances caused to the transportation of goods that would make the availability of required raw materials difficult an thus creating an increase the prices and affecting the cost of productions and also the finished products takes longer times to reach the market and can lead to wastage and huge losses to the companies.
A drought is to be considered as an extreme climatic condition that could affect many sectors such as the farmer groups, the production industries etc. The farmers who are considered as the feeders of the world depend upon the water as a major resource for their farming and it could lead to a shrink harvest. For the industrialist water is one other basic raw material and thus the unavailability of water could make difficulties in production and thus leads to increase in the cost of production and even it may lead to stoppage of production of goods. Some of the other socio economic impact that are caused due to the climatic changes are the increase in the cost of adapting of living in sea areas due to rising sea levels, the reallocation of whole tows that may be demanded due to flood, drought, earthquakes and other natural disaster, the spreading of diseases due to increase in the temperature as a result of damage to ozone layers and the green house effects, the shortage to the supply of fresh water resources and that could make a threat to human lives, loss of capacity to work for the human resources that could be due to inability to adapt to sudden changes and the extreme chances of war
eakouts between...