Extreme weather events have cost the global economy a staggering $2 trillion over the past decade, according to a new report by the International Chamber of Commerce (ICC). As diplomats gather for the COP29 climate summit, the report underscores the urgent financial toll of climate-related disasters, ranging from flash floods to prolonged droughts.
Analyzing 4,000 extreme weather events between 2014 and 2023, the report found that damages reached $451 billion in just the last two years. The U.S. bore the brunt, suffering $935 billion in economic losses, followed by China at $268 billion and India at $112 billion. Smaller nations, such as Saint Martin and the Bahamas, experienced the most significant losses per capita, highlighting the disproportionate impact on vulnerable regions.
The study also identified an upward trend in the costs of extreme weather, with a significant spike in 2017 when North America faced a particularly active hurricane season. “The data from the past decade shows definitively that climate change is not a future problem,” said John Denton, ICC Secretary-General. “The real economy is feeling major productivity losses from extreme weather events in the here and now.”
The rising costs are attributed to increased wealth and development in disaster-prone regions, escalating fossil fuel emissions driving planetary heating, and the expanding intensity of extreme weather. While scientists historically struggled to quantify the human role in amplifying such events, recent advancements have made it clear that climate breakdown is a critical factor.
As world leaders at COP29 debate how much wealthier nations should contribute to helping poorer countries adapt and recover, this report serves as a stark reminder of the financial urgency of addressing the climate crisis and its devastating impact on economies worldwide. Read More
News Credit: The Guardian
Picture Credit: Giorgio Viera/AFP/Getty Images