Climate Disasters Cost The World Over $120 Billion in 2025: Report

Last Updated:December 27, 2025, 14:37 IST

Christian Aid reports extreme weather in 2025 cost over $122 billion globally, with California wildfires, Southeast Asia floods, and China floods among the costliest disasters.

Christian Aid reports extreme weather in 2025 cost over $122 billion globally, with California wildfires, Southeast Asia floods, and China floods among the costliest disasters. (AP)

Extreme weather events driven by climate change cost the global economy more than $120 billion in 2025, according to a new report released by UK-based NGO Christian Aid.

The report links the soaring financial toll to the continued expansion of fossil fuels, warning that the cost of climate inaction is becoming increasingly unbearable as vulnerable communities suffer the consequences of rising greenhouse gas emissions.

“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.

According to the analysis, the 10 costliest climate-related disasters of 2025 each caused damage exceeding $1 billion, with combined losses topping $122 billion. Most estimates are based solely on insured losses, meaning the true economic impact is likely far higher, while human suffering often goes unrecorded.

The report found that the United States suffered the largest financial losses, with California wildfires ranking as the single most expensive event of the year. The fires caused around $60 billion in damage and claimed more than 400 lives.

Second on the list were cyclones and floods that struck Southeast Asia in November, causing an estimated $25 billion in damage and killing over 1,750 people across Thailand, Indonesia, Sri Lanka, Vietnam and Malaysia. Third were devastating floods in China, which displaced thousands, killed at least 30 people and resulted in $11.7 billion in losses.

Asia accounted for four of the six costliest disasters worldwide. Flooding in India and Pakistan killed more than 1,860 people, caused damage of up to $6 billion, and affected over seven million people in Pakistan alone. Typhoons in the Philippines caused more than $5 billion in damage and displaced over 1.4 million people.

While wealthier countries dominate the rankings due to higher property values and insurance coverage, the report stressed that some of the most devastating events occurred in poorer nations that have contributed little to the climate crisis. Flooding in Nigeria and the Democratic Republic of Congo affected thousands, with Nigeria alone recording up to 700 deaths. Meanwhile, prolonged drought in Iran and parts of West Asia threatened water supplies for up to 10 million people in Tehran.

Unusual and alarming climate extremes were also recorded elsewhere, including record-breaking heat that triggered wildfires in Scotland’s highlands, burning 47,000 hectares, and Japan experiencing both severe snowstorms and extreme heatwaves in the same year. Scientists also flagged worrying changes in Antarctica and record sea temperatures in the world’s oceans, with coral bleaching reported off Western Australia.

Christian Aid said the findings highlight the urgent need to cut carbon emissions, accelerate the transition to renewable energy, and provide financial support to vulnerable communities.

“This year has once again shown the stark reality of climate breakdown," said Patrick Watt, CEO of Christian Aid. “Violent storms, devastating floods and prolonged droughts are turning lives and livelihoods upside down. The poorest communities are first and worst affected, underscoring the urgent need for adaptation and a rapid move away from fossil fuels."

-Inputs from agencies

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