Climate-related disasters cost over $120B in 2025
What's the story
The year 2025 witnessed some of the most devastating climate-related disasters, according to a report by charity organization Christian Aid. The top 10 such events resulted in over $120 billion in insured losses. The report highlights the economic impact of these disasters, which are often brushed aside as "natural disasters," but are actually exacerbated by human-induced climate change.
Southeast Asia disaster
Southeast Asia's cyclones and floods caused $25B in damages
In autumn 2025, cyclones and floods in Southeast Asia claimed over 1,750 lives and caused damages worth over $25 billion. The report also noted that California wildfires killed more than 400 people and inflicted a financial toll of $60 billion. China's catastrophic floods were the third most expensive disaster of the year, causing about $12 billion in damage with at least 30 fatalities.
Worldwide repercussions
Global impact of climate-related disasters in 2025
The report also highlighted other major climate-related disasters, including a series of typhoons in the Philippines that displaced over 1.4 million people and caused $5 billion in damages. Floods in India and Pakistan claimed over 1,860 lives and caused about $6 billion worth of damage, affecting more than seven million people in Pakistan alone.
Human influence
Climate change and its impact on disasters
Joanna Haigh, emeritus professor of atmospheric physics at Imperial College London, said the frequency and intensity of damaging events are increasing due to the human-made climate crisis. She emphasized that these disasters are not "natural" but rather a direct consequence of continued fossil fuel expansion and political inaction. This perspective challenges the common perception of such events as mere outcomes of normal weather patterns.
Economic inequality
Disparities in disaster costs between developed and developing countries
The report also pointed out the disparity in disaster costs between developed and developing countries. While the economic cost of disasters is often higher in developed nations due to insurance coverage, the true toll can be much higher in developing countries. Mohamed Adow, director of Power Shift Africa thinktank, stressed that wealthy nations should provide real support for those on the frontlines of these disasters.
Global response
UN climate summit and future plans
At the recent COP30 climate summit in Belem, rich countries agreed to triple funding for poor nations to adapt to extreme weather impacts. However, Christian Aid's chief executive Patrick Watt warned that this funding will still fall short of what's needed for protection in developing countries. He stressed that the bill for extreme weather damages will keep rising until greenhouse gas emissions are cut and fossil fuels phased out.