Extreme weather linked to the climate crisis has caused $16 million (£13 million) in damage per hour over the past 20 years, a new estimate reveals. Storms, floods, heatwaves, and droughts have increasingly occurred, with global warming exacerbating their intensity.
This study is the first to calculate the direct economic costs of human-caused global heating, estimating an annual average of $140 billion (£115 billion) from 2000 to 2019, though this figure spiked to $280 billion in 2022. The researchers noted that the actual costs are likely much higher due to data gaps, particularly in low-income countries.
The study combined data on the impact of global heating on extreme weather with economic loss data, finding that 1.2 billion people were affected by these events over two decades.
New Study Reveals Staggering Economic Toll of Extreme Weather Fueled by Global WarmingTwo-thirds of the damages resulted from lives lost, and one-third from property destruction. Storms were the primary culprits, accounting for two-thirds of the costs, followed by heatwaves (16%) and floods and droughts (10%).
This method could inform the funding needed for the loss and damage fund established at the UN’s 2022 climate summit, aimed at aiding poorer countries in recovery.
The research highlighted that traditional models underestimate climate change costs, as they often miss the severe impacts of extreme weather events. For instance, heatwave death data is scarce outside Europe.
There has been a sevenfold increase in reported losses from extreme weather since the 1970s, though isolating the impact of global heating from other factors remains challenging.
The study, published in Nature Communications, emphasizes the need for rapid funding delivery based on climate damage estimates and could support climate litigation cases. The study underscores the necessity for richer countries to support poorer ones in coping with climate-induced disasters.