CNBC's Lee Ying Shan is reporting on the growing price tag and economic risk of climate change.
Over the past two decades, the global climate crisis has resulted in damages costing an average of $391 million per day, with the total cost from 2000 to 2019 averaging over $143 billion annually, according to a study published in Nature Communications. A significant 63% of these costs were attributed to the loss of human lives, with major events like Tropical Cyclone Nargis in 2008, the 2003 European heatwave, and the 2010 Russian heatwave and Somali drought causing the most significant losses. Furthermore, 2023 is poised to be the hottest year ever recorded, following an unprecedentedly hot summer marked by extreme weather events. The study emphasizes that the true costs of climate change may be underestimated due to indirect losses, such as reduced productivity or mental health effects. The World Meteorological Organization also highlighted that the global efforts to limit temperature rises, as agreed in the 2015 Paris climate accord, are lagging, with the likelihood of temperatures exceeding 1.5°C above pre-industrial levels within the next five years now at 66%.
(This article was written with assistance from ChatGPT)