Global climate change is a major challenge faced by humanity today. This phenomenon is mainly caused by greenhouse gas emissions resulting from human activities, such as industry, transportation, and burning fossil fuels. The impact of climate change is very real, affecting various aspects of life, especially the world economy. One of the direct impacts of climate change is the increase in the frequency and intensity of natural disasters, such as floods, droughts and storms. These disasters can cause huge losses to the agricultural sector, which relies on a stable climate. For example, food production could decline drastically due to crop failure, causing a spike in global food prices and increasing economic instability in countries that depend on food imports. The tourism sector has also been significantly impacted. Destinations that were once known for their friendly climates are now threatened by climate change. For example, coastal areas that are prone to flooding and natural tourist attractions have lost their appeal due to changes in the ecosystem. Loss of income from the tourism sector can impact local employment and income, which will worsen the economic situation of the community. Depleting water resources due to climate change is also an important concern. With rising temperatures and changing rainfall patterns, some regions are experiencing water shortages. This has an impact on industrial sectors that depend on water for production, as well as affecting public health. The energy sector is also affected, especially those dependent on resources such as hydroelectricity, which may experience reduced production due to reduced water supplies. Climate change is also driving a shift in energy security. Investment in renewable energy is increasingly urgent to reduce carbon emissions. However, this transition requires large initial costs, which can be challenging for developing countries with limited resources. On the other hand, technological innovation in clean energy sources creates new opportunities for markets and investments. Governments and international institutions are increasingly realizing the urgency for mitigation and adaptation policies to climate change. They seek to implement sustainable policies, but this is often hampered by short-term political and economic interests. Global agreements such as the Paris Agreement seek to unite the world in fighting climate change, but effective implementation remains a challenge. The climate change crisis provides an opportunity for companies to innovate and adapt. Many businesses are starting to adopt sustainable practices, not only to meet regulations, but also to appeal to consumers who are increasingly concerned about the environment. Investment in green technology can encourage new economic growth, create jobs and increase competitiveness. It cannot be denied that global climate change has a broad impact that spreads to various economic sectors. Effective handling is very necessary to minimize losses and take advantage of existing opportunities. Awareness and collective action at the global, national and local levels will greatly determine the future of the world economy in facing the challenge of climate change.
