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Recently, a series of crises, such as the COVID-19 pandemic, the global chip shortage, or the disruptions in the Suez and Panama Canal, have highlighted interdependencies and vulnerabilities of international supply chains (SCs).
Those events demonstrated that isolated incidents can have significant repercussions on global trade. Under global warming, such disruptions are expected to become more frequent and more intense, increasing pressures on supply chains.
In this policy brief, we point out that the current state of (national and international) supply chain data leaves us unequipped to identify, quantify and mitigate climate risk exposure in supply networks.
We identify three main ways the G20 can lead efforts to make the global economy more resilient. First, the G20 should encourage individual countries to collect and manage national supply network data to strengthen local resilience. Second, the G20 should establish an institutional framework for international cooperation to quantify, monitor, and identify global supply network risks. Finally, the G20 should take advantage of the acquired knowledge to increase the global supply network’s resilience to climate change and better plan adaptation and mitigation efforts.
M. Bossut, C. Diem, J. Stangl, A. Pichler, S. Thurner, U. Moslener, C. Marchewitz, K. Neuhoff, D.N. Bresch, A Call for Granular Supply Network Data for Navigating the Climate Transition, Task Force 04 (T20) Policy Brief (2024).
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