This report, commissioned by the International Chamber of Commerce, analyzes the economic impacts of climate-related extreme weather events, focusing on physical asset destruction and human capital loss from 2014 to 2023. It highlights the acute economic burden these events place on global economies, with cumulative costs nearing $2 trillion. The analysis divides impacts into three main categories: physical, human, and broader economic effects. Physical impacts encompass damage to infrastructure, private and commercial properties, and agricultural assets, resulting in significant repair costs and supply chain disruptions. Human impacts include premature deaths, injuries, and displacement, which reduce productivity and exacerbate socio-economic inequalities. Broader economic impacts involve deterrence of investment and strain on public finances, especially in vulnerable regions. The report advocates for urgent climate action and resilience investments to prevent further losses, citing COP29 as a pivotal moment for securing climate finance. It underscores the need for global adaptation and mitigation strategies to alleviate the ongoing economic strain of climate change-driven events, which disproportionately affect less-developed regions.
Authors
- Pages
- 51
- Published in
- France
Table of Contents
- The economic cost of extreme weather events Prepared for the International Chamber of Commerce 1
- 7 November 2024 1
- Contents 2
- ICC foreword 4
- John W.H. Denton AO 4
- Secretary General International Chamber of Commerce 4
- Executive summary 5
- 2 trillion 5
- 1.6 billion 6
- 451 billion 19 increase 6
- 1 Introduction 7
- 2 Understanding the trends and distribution of climate-related extreme weather impacts 9
- 2.1 Acute vs. chronic impacts 9
- 2.2 Definition and scope of climate-related extreme weather events 10
- 2.3 Trends in climate-related extreme weather events 11
- 2.4 The distribution of climate-related extreme weather impacts 12
- 3 Categories of economic impact associated with extreme weather events 16
- 3.1 Introduction 16
- 3.2 Physical impacts 16
- 3.3 Human impacts 25
- 3.4 Broader impacts 28
- 3.5 Conclusion 32
- 4 Quantifying the economic damage to physical assets and human capital associated with extreme weather events 33
- 4.1 Introduction 33
- 4.2 Methodology and data sources 33
- 4.3 Destruction of physical assets 35
- 4.4 Destruction of human capital early deaths 36
- 4.5 Findings 37
- 4.6 Conclusion 48
