Role of high-quality data in guiding responses to the climate crisis

The climate crisis is one of the most pressing global challenges of the 21st century. The impacts of climate crisis—ranging from extreme weather events to long-term shifts in climate patterns—are already being felt across the globe. As governments strive to address these challenges, the importance of high-quality data in shaping effective policies cannot be overstated. Accurate data, particularly economic data, is crucial for understanding the real costs of the climate crisis and guiding governmental responses.

High-quality data serves as the foundation for informed decision-making. In the context of the climate crisis, this data encompasses a wide range of information, including:

• Economic indicators: Data on GDP, employment, productivity, and trade flows helps quantify the economic impact of the climate crisis.
• Environmental data: Information on carbon emissions, temperature changes, and sea level rise provides insights into the physical manifestations of the climate crisis.
• Social data: Demographic data, health statistics, and migration patterns are essential for understanding the social costs of the climate crisis.
• Cost-benefit analyses: High-quality data allows for accurate assessments of the costs and benefits of various climate policies, helping to identify the most effective strategies.

The economic impacts of the climate crisis are profound and multifaceted. According to a study by the World Bank, the global economy could shrink by up to 23% by 2100 if no action is taken to mitigate the climate crisis. This projection is based on extensive economic modeling, which relies on high-quality data to estimate the potential costs of the climate crisis across various sectors.

For example, agriculture is particularly vulnerable to the climate crisis, with extreme weather events and shifting climate patterns leading to reduced crop yields. The Intergovernmental Panel on Climate Change (IPCC) estimates that global crop yields could decrease by up to 25% by 2050 due to the climate crisis. Such data is crucial for governments to understand the potential economic losses in agriculture and to design policies that can mitigate these impacts, such as investing in climate-resilient crops or improving irrigation infrastructure.

Similarly, data on the costs of climate-related disasters is essential for government planning. The National Oceanic and Atmospheric Administration (NOAA) reported that in 2020, the United States experienced 22 separate billion-dollar weather and climate disasters, with a total cost of $95 billion. High-quality data on these events allows governments to allocate resources effectively for disaster preparedness and response.

High-quality data is not only essential for understanding the economic impact of the climate crisis but also for guiding effective government responses. This includes:

• Policy formulation: Accurate data helps governments design policies that target the most pressing climate-related issues. For instance, carbon pricing mechanisms, such as carbon taxes or cap-and-trade systems, rely on precise emissions data to set appropriate pricing levels that reflect the true cost of carbon.
• Resource allocation: Governments need high-quality data to allocate resources efficiently. This includes funding for renewable energy projects, subsidies for climate adaptation measures, and investments in infrastructure to withstand extreme weather events.
• Monitoring and evaluation: Data allows governments to monitor the effectiveness of their climate policies and make adjustments as needed. For example, data on greenhouse gas emissions can be used to assess the success of emission reduction initiatives and to refine strategies for achieving climate targets.
• International cooperation: The climate crisis is a global issue that requires international cooperation. High-quality data enables governments to engage in meaningful negotiations and to commit to global agreements, such as the Paris Agreement, with a clear understanding of their own national circumstances and the global context.

The European Union (EU) provides a clear example of how high-quality data can guide governmental responses to climate crisis. The EU’s climate policy, which aims to achieve net-zero emissions by 2050, is underpinned by extensive data collection and analysis.

The European Environment Agency (EEA) collects data on greenhouse gas emissions, energy consumption, and climate impacts across all EU member States. This data informs the EU’s Emissions Trading System (ETS), which is the world’s largest carbon market. By accurately pricing carbon, the ETS incentivises businesses to reduce emissions and invest in cleaner technologies.

Moreover, the EU uses data to track progress towards its climate goals. The EEA’s annual Trends and Projections in Europe report provides detailed data on emissions reductions and renewable energy deployment, allowing the EU to adjust its policies as needed to stay on track.

Despite the importance of high-quality data, there are significant challenges in collecting and utilising it effectively. These challenges include:

• Data gaps: In many developing countries, there is a lack of reliable data on economic, environmental, and social indicators. This hampers efforts to assess the full impact of the climate crisis and to design effective policies.
• Data Integration: The climate crisis is a complex issue that requires the integration of data from various sources and disciplines. Ensuring that data is compatible and can be used together is a major challenge for governments and researchers.
• Timeliness: The climate crisis is a rapidly evolving issue, and data needs to be up-to-date to be useful. Delays in data collection and reporting can hinder timely policy responses.
• Political influence: The use of data in policy-making can be influenced by political considerations. Ensuring that data is used objectively and transparently is essential for effective climate policy.

High-quality data is essential for understanding the real costs of the climate crisis and for guiding effective governmental responses. As the impacts of climate crisis become more severe, the need for accurate and comprehensive data will only grow. Governments must invest in data collection and analysis to ensure that their climate policies are based on the best available evidence. By doing so, they can mitigate the economic, social, and environmental impacts of the climate crisis and build a more sustainable future.

This article is authored by Ananya Raj Kakoti and Gunwant Singh, scholars, international relations, Jawaharlal Nehru University, New Delhi.