Report Warns: Climate Costs Rising Tenfold Since 2000

Highlights

• Climate losses touched $1.4 trillion in 2024 and rose tenfold since the start of the century.
• Canada, Singapore, the UK, and Japan ranked among the best prepared, whereas the US placed 12th.
• The AXA 2025 report named climate change as the top global risk, with experts warning of worsening vulnerabilities.

The financial impact of climate change has expanded profoundly over the past two decades.

According to BloombergNEF (BNEF), climate-related disasters cost the global economy at least $1.4 trillion in 2024, a tenfold increase compared to the early 2000s. This surge concurred with a separate study warning that the world may have crossed its first climate tipping point, which increases the risk of irreversible coral reef loss.

BNEF dwelled at length on the preparedness of G20 countries and selected Southeast Asian nations that play influential roles in global supply chains.

Huge differences in climate resilience strategies

Countries such as Canada, Singapore, South Korea, Australia, the UK, and Japan have built stronger frameworks to withstand worsening climate impacts. Their plans bring in infrastructure defences, sectoral risk assessments, and measures to protect vulnerable industries.

By contrast, the United States ranked 12th out of 25 nations despite facing the highest climate-related costs. It has invested heavily in engineered flood, drought, and wildfire defences.

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However, federal adaptation policies still trail those of many peer economies, and some existing initiatives may be rolled back under the Trump administration.

Meanwhile, Saudi Arabia, Russia, and Thailand ranked lowest. The report noted that these countries have either not pursued climate adaptation at a national scale or have released very limited information about their actions.

According to Danya Liu, lead analyst for BNEF’s Climate Adaptation practice, investors are paying closer attention to adaptation strategies. Countries with well-built plans are likely to face lower climate-driven losses and can draw more investment.

The report shows several economic advantages linked to adaptation measures: reduced exposure to physical damages, stronger performance in climate-sensitive sectors such as agriculture, lower risk perception among financiers, and the growth of new adaptation markets.

Despite these benefits, most governments continue to underinvest in climate resilience. Even in nations with advanced strategies, such as the UK, critics have raised concerns about insufficient flood protection and other vulnerabilities.

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The United Nations has urged all governments to firm up national adaptation plans and increase climate finance for developing economies.

Kobad Bhavnagri, BNEF’s head of strategy, said that many major economies have not done enough to buffer economic stability, which raises concerns for businesses and investors operating within those countries.

In a similar development, AXA released its 2025 Future Risks Report, prepared with Ipsos.

The findings show widespread concern among experts and the public. 95% of experts and 93% of the general population said global crises have grown more frequent in recent years.

83% of experts and 78% of the public said the world is more vulnerable now than it was in 2020. Few had confidence in public authorities’ ability to manage future threats.

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Climate change is the top brewing risk for 2025, followed by geopolitical instability, cybersecurity, and artificial intelligence. Other environmental worries, such as resource insecurity, biodiversity loss, and energy-related risks, also featured prominently.

AXA’s CEO Thomas Buberl said that rising polarisation and weakening social cohesion are amplifying existing risks. He called for more strategic thinking, shared leadership, and stronger international cooperation to tackle global threats.

Ends/

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