Natural disasters, particularly floods and droughts, increased food prices, and decreased labour productivity will strike South America's poorest, according to the report.
According to the report, Brazil is in a good position to source additional renewable energy because nearly half of its energy supply, including more than 80% of its electricity, is already generated from renewables, compared to global averages of 15% to 27%.
"To fully realize its (low carbon) potential, Brazil would require net investments of 0.5% of its annual GDP per year between now and 2050," said Johannes Zutt, World Bank Country Director for Brazil, noting that climate change could push 800,000 to 3 million Brazilians into extreme poverty by the end of the decade.
In a November research, the World Bank warned that "climate change poses a major threat to long-term development objectives, especially poverty reduction." It has published a series of documents showing the costs to governments around the world and recommended mitigation strategies.
According to an Inter-American Development Bank (IDB) research cited in the Brazil report, Brazil may soon reach a tipping point beyond which the Amazon basin would no longer receive adequate rainfall to support ecosystems, secure water supply, and carbon storage.
In the worst-case scenario, the cumulative impact on Brazil's GDP by 2050 is anticipated to be USD 184 billion, or 9.7% of the country's current GDP, as a result of climate change, deforestation, and pasture expansion. This disruption would have a substantial social and economic impact, according to the World Bank, with "serious consequences for agriculture, water supply in cities, flood mitigation, and hydroelectric power generation."
