Competing in the face of climate risks: Evidence from firms and policy priorities in MENAAP

This report focuses on two concrete and immediate examples of how heat- and trade-related policies in destination markets affect firms and the broader economy of the MENAAP region. Countries in the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP) region are among the most water-scarce in the world and increasingly vulnerable to heat extremes, droughts, floods, and sea-level rise. 

The report concludes that esponding to climate risk can generate benefits that go well beyond reducing related losses. Policies that strengthen access to finance, improve the business environment, upgrade infrastructure, and promote resource efficiency can raise productivity, enhance competitiveness, support job creation, improve health outcomes, and increase resilience to other shocks.