In a new report, the World Economic Forum (WEF) warns that if left unaddressed, climate change could lead to 14.5 million excess deaths and trillions of dollars in economic losses by 2050. These impacts will be concentrated in the world’s most vulnerable regions. The report, titled “Building Economic Resilience to the Health Impacts of Climate Change,” highlights that deaths from extreme weather events have been about 15 times higher in these regions over the past decade.
Threats to Business Sectors
The report states that the health impacts of climate change threaten business resilience, yet less than 5% of global adaptation funding targets health protection. The WEF’s report applies a “Climate and Health Business Framework” to four highly exposed sectors to identify specific risks and opportunities.
- Food and Agriculture: The report estimates an additional 24 million people will face hunger by 2050. Worker-availability losses in this sector could reach a likely, mid-range scenario of $740 billion between 2025 and 2050.
- Built Environment: Over half the world’s population lives in urban areas with infrastructure poorly adapted to climate extremes. The construction industry is projected to lose at least $570 billion in worker-availability losses between 2025 and 2050.
- Health and Health-Care: This sector is expected to face at least $200 billion in worker-availability losses and an additional $1.1 trillion treatment burden by 2050, highlighting the need for a shift to preventive care.
- Insurance: Climate change is driving up health, life, and casualty claims. The report notes that only about 8% of people in low-income communities have health insurance. Insurers can help by offering innovative products and incentivizing risk reduction.
The Need for Coordinated Action
Taken together, worker-availability losses across these three sectors alone are projected to exceed $1.5 trillion between 2025 and 2050. The report stresses that no single sector can tackle this challenge alone. Success depends on coordinated action through supportive policies, interoperable data systems, and innovative financing to mobilize capital.
The report also highlights practical measures to reduce illness and mortality, such as providing workers with medical care, implementing cooling solutions, and modifying work practices. It calls for expanded investment in research and development to advance science and develop solutions for climate-linked health challenges.
