Climate Change's Growing Effect on Commodity Markets
A commodity is, by definition, a basic good used in trade that may be substituted for other similar goods. Since the Sumerians utilized clay tablets to indicate the quantity of products to be delivered about 4000 BC, commodities trading has evolved alongside humans due to their nearly interchangeable nature. From the coffee that gives us energy to start the day on a Monday morning to the lithium that powers our phones and laptops to the oil and natural gas that heats our homes—which have been in the news recently because of Russia's invasion of Ukraine—commodities are an essential part of our daily lives. These illustrations highlight how nations and people alike eventually depend on the readily available nature of goods. But in addition to the supply and demand dynamics that are currently driving up commodity prices, climate change is also becoming more and more of a structural issue affecting the availability and production of commodities as well as the global commodity markets