cover image: The Economic Cost of Extreme Weather Events

The Economic Cost of Extreme Weather Events

11 Nov 2024

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.
climate business risk extreme weather

Authors

Oxera Consulting

Pages
51
Published in
France

Table of Contents

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