Climate Health Crisis Could Cost Global Economy $1.5 Trillion by 2050
Climate-related health risks may slash global productivity.
A groundbreaking study released by the World Economic Forum (WEF), in collaboration with the Boston Consulting Group (BCG), projects that climate-driven health risks could cost the global economy at least USD 1.5 trillion (over Rs 131 lakh crore) in lost productivity by 2050. The report, supported by the Rockefeller Foundation, highlights the escalating impact of climate change on workforce health and economic output across key sectors, including food and agriculture, the built environment, health and healthcare, and insurance.
The USD 1.5 trillion estimate, based on a mid-range scenario, accounts for productivity losses in the first three sectors alone, suggesting the total economic burden could be significantly higher. In food and agriculture, climate-related health impacts are projected to result in USD 740 billion in lost output, threatening global food security.
The built environment sector faces USD 570 billion in losses due to reduced worker productivity, while the health and healthcare sector could lose USD 200 billion as climate-driven diseases strain workforce capacity and increase demand for medical services. The insurance industry is expected to see a surge in climate-related health claims, further compounding economic pressures.
Eric White, Head of Climate Resilience at WEF, emphasized the urgency of action, stating, “Protecting worker health is proving essential to business continuity and long-term resilience. Every year we delay, the risks to human health and productivity climb, and adaptation costs rise.” Naveen Rao, Vice-President for Health at the Rockefeller Foundation, added, “As temperatures rise, millions of jobs become more dangerous—or disappear entirely—pushing families deeper into poverty.”
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The report underscores that early investment in climate health adaptation can mitigate risks and unlock opportunities for innovation. Examples include climate-resilient crops, heat-stable medications, cooling technologies for construction workers, and new insurance models to protect communities. However, Elia Tziambazis, Managing Director at BCG, noted, “Momentum on health adaptation is building, but financing and implementation are still far below what’s needed.”
Drawing on health data from scientific literature, employment data, and economic projections from the International Labour Organisation and World Bank, the report calls for supportive policies, interoperable climate health data systems, and innovative financing to drive a global shift toward health resilience.
Published ahead of the WEF’s Sustainable Development Impact Meetings 2025 and COP30 in Belem, Brazil, the findings position health adaptation as a critical focus for global climate negotiations, urging businesses and policymakers to align efforts to safeguard economies and communities against the growing threat of climate-driven health challenges.
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