The devastating cost of extreme weather events: over $2 trillion

Weather events generated by climate change continue to cause major damage to the global economy, with a total cost of more than $2 trillion over the past decade, according to a report by the International Chamber of Commerce (ICC). An estimated $451 billion was lost in the past two years alone due to extreme weather events, from catastrophic floods to prolonged droughts that ruin agricultural economies. "Climate change is no longer a problem of the future; it is affecting the real economy right now," stressed John Denton, ICC Secretary General.

• Top countries affected: US, China and India in the lead

The report highlights that the United States recorded the highest economic losses, estimated at 935 billion dollars, followed by China (268 billion) and India (112 billion). Other countries such as Germany, Australia, France and Brazil also suffered significant losses, entering the top 10 of the most affected economies. The phenomenon is amplified by rapid urbanization and the increased exposure of communities to weather risks in disaster-prone regions.

• Climate disasters and the link to human activities

While estimating the total costs of extreme weather events is complex, recent studies indicate that a large part of these events are exacerbated by human activities. For example, research shows that extreme heat waves and heavy rainfall in Central Europe in 2022 and 2023 were intensified by climate change.

Disaster economist Ilan Noy warns that these figures do not fully reflect the situation in poor communities, where the impact is much more devastating in the long term. "Losses of homes and livelihoods in poor countries are much harder to recover than in rich countries," he says.

• Human and financial costs: who pays the price?

The report says the financial impact of climate change is felt most strongly in developed economies, but vulnerable communities in low-income countries are suffering disproportionately, including loss of life and destruction of basic infrastructure. Studies indicate an annual cost of $143 billion that can be directly attributed to climate disasters.

• A global call for action and financial solidarity

The ICC has called on world leaders to accelerate climate finance in developing countries, stressing that this investment is not an act of charity but a strategic necessity for the stability of the global economy. "Every dollar spent on climate action is an investment in a stronger and more resilient global economy," Denton concluded, calling for closer international collaboration to combat the increasingly severe impacts of extreme weather events.