Extreme Weather Inflicts $2 Trillion Economic Burden Globally Over a Decade

A report indicates that extreme weather has resulted in $2 trillion in global economic damages over the last decade, with $451 billion of this occurring in the past two years. The analysis also stresses the immediate repercussions of climate change on economic productivity and calls for swift financial support for vulnerable countries, highlighting the need for international collaboration at the Cop29 climate summit.

A recent report reveals that extreme weather events have caused $2 trillion in global economic damages over the past decade. The analysis, which examined 4,000 climate-related incidents, noted that such events accounted for $451 billion in economic losses in the last two years alone. These findings arrive as world leaders convene at the Cop29 climate summit, where financial commitments are being negotiated amid increasing concerns about climate change’s direct impact on economies worldwide. John Denton, secretary-general of the International Chamber of Commerce, emphasized that the data demonstrates that climate change is a pressing issue affecting the real economy today. The report outlines the escalating costs of extreme weather between 2014 and 2023, highlighting a significant increase around the 2017 hurricane season which heavily impacted North America. The United States experienced the most substantial financial losses, totaling $935 billion, followed by China and India. When assessing losses on a per capita basis, small island nations, such as Saint Martin and the Bahamas, faced the highest impacts. The financial toll from disasters has intensified as populations grow in areas more susceptible to such events, exacerbated by fossil fuel emissions. Challenges remain in attributing specific weather events to climate change. While studies have indicated that climate change contributed to over half of the heat-related fatalities in Europe during the summer of 2022, not all extreme weather events have a clear climate link. Ilan Noy, a disaster economist, stressed that while the ICC report aligns with previous studies, it may overlook the profound effects on poorer communities that suffer the most from these disasters. His prior research estimated extreme weather costs linked to climate change at $143 billion annually, reflecting primarily the loss of life and hampered by data limitations, especially in regions like Africa. The ICC advocates for expedited financial support to vulnerable nations, underscoring that climate action financing is not merely a charitable act from wealthier nations. Rather, it should be perceived as an investment in enhancing global economic resilience. Denton articulated, “Every dollar spent is, ultimately, an investment in a stronger and more resilient global economy from which we all benefit.”

The growing impact of climate change has led to an increase in extreme weather events, which in turn contribute to significant economic losses worldwide. This report underscores the financial implications of these disasters over the past decade and highlights the necessity for international cooperation to address climate change. As nations hold talks on financial responsibilities at the Cop29 climate summit, the focus shifts toward how much developed countries should contribute to assist developing nations in their climate adaptation efforts and recovery from severe weather-related damages. Understanding these economic impacts is crucial for making informed policy decisions.

The findings indicate that extreme weather events pose a substantial threat to global economies, with a total cost of $2 trillion over the past decade. The analysis highlights the disparity in losses experienced by wealthy nations compared to the long-lasting impacts on poorer communities. Moreover, timely financial assistance for climate action in developing countries is paramount for fostering a more resilient global economy. Addressing these challenges necessitates urgent action from world leaders to allocate funds efficiently and mitigate the effects of climate change.

Original Source: www.theguardian.com