South Pacific Feels Effects Of Global Warming.

Risk managers of global companies with business interests in the South Pacific Islands should pay close attention to a recent report from the World Bank, which warns that global warming is causing millions of dollars in damages every year to that part of the world.

Nations in the South Pacific Islands include Fiji, the Marshall Islands, Kiribati and Palau.

The report "Cities, Seas and Storms: Managing Change in Pacific Island Economies" says global warming is making the Pacific Island region increasingly vulnerable to extreme weather events, such as rising sea levels and tropical storms. In the 1990s, the report says, the cost of extreme events in the Pacific Island region exceeded $1 billion. Global warming could precipitate climate changes that could cause more intense cyclones, droughts and El Nino-like conditions leading to heavier-than-average rainfall. Climate change could affect the islands' agricultural business and tuna fishing industry and could cause destruction of coastal infrastructure.

Periodic storm surges that could cause flooding of up to 85% of the land in some islands have been predicted. These storms may generate damages of $23 million to $52 million annually by 2050.