Climate change a far greater threat to global economy than Covid-19 pandemic amid rising intensity of heatwaves and floods, Swiss Re says
- Some US$270 billion worth of economic losses were caused by natural catastrophes worldwide last year, according to Swiss Re
- Net zero by 2050 is required to avert the worst catastrophic impacts of climate change, scientists said
Climate change poses a bigger risk to long-term global economic growth than the ongoing Covid-19 pandemic, according to Swiss Re.
The world just had the third warmest June on record last month, with the average temperature 0.32 degrees Celsius higher than the average for the month in the three decades to 2020, according to Europe’s Copernicus Climate Change Service.
The company, one of the world’s biggest reinsurers, estimated that US$270 billion worth of economic losses were caused by natural catastrophes worldwide last year, of which a third were attributed to floods. Just a quarter of flood-related losses were covered by insurance.
“Despite the pandemic’s extensive impact, climate change remains the biggest long-term threat to the global economy,” Swiss Re said in written comments to the Post. “And the effects of climate change are already manifesting in second perils, such as flash floods, droughts and wildfires.”
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Soaring temperatures trigger red alerts in 68 Chinese cities as roofs melt and roads buckle
As heatwaves afflict vast swathes of land from Spain to Italy, Europe endured the second warmest June on record at around 1.6 degrees above average. Spain and Portugal are suffering their second prolonged heatwave in two months, after experiencing the hottest May on record.