The economic impact of climate-related disasters has escalated sharply, as illustrated in a recent report by the International Chamber of Commerce (ICC).
The report, released as the UN Climate Change Conference begins in Azerbaijan, highlights that extreme weather events have caused nearly $2 trillion in damage globally from 2014 to 2023, an amount comparable to the 2008 global financial crisis. This estimate underscores the rising costs associated with climate change, particularly in recent years.
The ICC report analysed thousands of climate events over the last decade, taking into account direct destruction of homes, businesses, and infrastructure as well as productivity losses.
These events affected an estimated 1.6 billion people, revealing that the economic toll is already being felt worldwide. Data shows an 83% increase in climate disasters between 1980-1999 and 2000-2019, suggesting that these occurrences are accelerating years that have also seen intensified economic damage.
Between 2022 and 2023 alone, damages reached $451 billion, marking a 19% increase over the annual average of the prior eight years . Moreovrom, the Copernicus Climate Change Service anticipates that 2024 may set a new record as the hottest year to date, underscoring the ongoing urgency to address climate change.
The ICC’s Secretary-General, John W.H. Denton, emphasized the need for a rapid, concerted response akin to that of the 2008 financial crisis to mitigate climate damage.
Yet, challenges remain as political developments in major countries, including the recent reelection of Donald Trump, may lead to a rollback of existing climate regulations. Trump has historically advocated against regulations like the Paris Climate Agreement, arguing that they impose economic burdens on Americans, a stance that could impact global climate initiatives.
These findings reveal the need for accelerated governmental and private-sector policies to reduce greenhouse gas emissions, particularly given that the cost and frequency of climate disasters appear to be intensifying.
Souce:
CNN
