Global Heatwaves, Wildfires, Droughts and Storms Cause Over USD 120 Billion Loss in 2025

New Delhi, Dec 27: Extreme weather events including heatwaves, wildfires, droughts, and storms cost the world more than USD 120 billion in 2025, according to a new report by UK-based NGO Christian Aid. The report highlights the escalating financial and human costs of climate change, emphasizing the central role of fossil fuel companies and political inaction in driving the crisis.

“These disasters are not natural  they are the predictable result of continued fossil fuel expansion and political delay,” said Emeritus Professor Joanna Haigh of Imperial College London. The report noted that the financial costs are largely based on insured losses, meaning the true economic burden is likely far higher, while the human toll is often uncounted.

The ten costliest events in 2025 caused over USD 122 billion in damages, with California wildfires topping the list at USD 60 billion and over 400 deaths. Southeast Asia faced cyclones and floods causing USD 25 billion in losses and more than 1,750 deaths across Thailand, Indonesia, Sri Lanka, Vietnam, and Malaysia. China’s floods caused USD 11.7 billion in damage and killed at least 30 people.

Other severe events included droughts in Brazil, wildfires in Spain and Portugal, and cyclones in Australia and Réunion. Asia accounted for four of the six costliest disasters, including flooding in India and Pakistan that killed over 1,860 people and affected millions, causing around USD 6 billion in damages. Typhoons in the Philippines displaced over 1.4 million people and caused more than USD 5 billion in losses.

The report also emphasized that poorer countries, which contribute least to climate change, were disproportionately affected. Flooding in Nigeria and the Democratic Republic of Congo, ongoing droughts in Iran and West Asia, and record-breaking heatwaves in Japan and Scotland caused significant disruptions, threatening millions of lives. Additionally, Antarctica and the world’s oceans recorded extreme conditions, including record sea temperatures and coral bleaching, posing threats to biodiversity.

Patrick Watt, CEO of Christian Aid, said, “This year has once again shown the stark reality of climate breakdown. Violent storms, devastating floods, and prolonged droughts are turning lives and livelihoods upside down. The poorest communities are first and worst affected. These climate disasters are a warning of what lies ahead if we do not accelerate the transition away from fossil fuels. Urgent adaptation and funding for vulnerable people, particularly in the global South, is critical.”