Wed Oct 16 23:16:07 UTC 2024: ## Brazil Faces Billions in Losses from Environmental Disasters, Study Finds

**São Paulo, Brazil** – A new study by the Federation of Industries of Minas Gerais (Fiemg) reveals the staggering financial impact of environmental disasters in Brazil, estimating accumulated losses of BRL 792 billion (USD 139 billion) between 1991 and 2023. The study highlights a significant increase in the frequency of natural disasters in recent years, with over 5,000 events occurring in 2023 alone, compared to 2,113 in 2015.

The study points to climate change as a primary driver behind the escalating frequency and severity of these events. It states that “climate transformation alters natural cycles and weakens habitats, impacting entire ecosystems. Heavy rainfall causes flooding, soil erosion, and landslides, worsening biodiversity loss and leading to the irreversible degradation of natural areas.”

The recent power outage in São Paulo, caused by heavy rainfall, serves as a stark reminder of the city’s vulnerability to extreme weather events. The study underscores the lack of preparedness among Brazilian cities to adapt to the challenges posed by climate change.

Fiemg’s analysis highlights the disproportionate impact of hydrological disasters, responsible for the majority of deaths and damages despite accounting for only 39% of all natural disasters in the country. The study advocates for increased investment in hydropower plants, arguing that they offer a more sustainable and environmentally friendly solution compared to thermal power plants.

“If there had been a hydroelectric plant similar to Três Marias in the Guaíba Basin, the reservoir could have controlled around 67 percent of the flow,” the study states, referencing the devastating floods that ravaged Rio Grande do Sul earlier this year. The study estimates the economic losses from these floods at BRL 87 billion (USD 15.3 billion), representing nearly 2% of Brazil’s GDP.

This research underscores the urgent need for Brazil to prioritize climate change adaptation strategies and invest in infrastructure that can mitigate the escalating risks associated with natural disasters. The findings serve as a wake-up call for policymakers and the private sector to collaborate in developing comprehensive solutions to safeguard Brazil’s economic and human well-being in the face of a changing climate.

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