Climate change is increasingly an economic crisis as well as an environmental one, with heatwaves, floods, droughts, cyclones, wildfires and rising seas damaging agriculture, industry, infrastructure, health and jobs. The source says poorer and developing countries that emit comparatively less carbon are often more exposed to these losses. World Bank data show that, between 2021 and 2024, 69% of people in low-income countries hit by disasters or extreme weather reported income losses, while 72% reported lost or damaged assets.

Agriculture-dependent economies, small island states, outdoor workers and marginalised groups face particular risks. The World Bank says climate change could push up to 130 million people into extreme poverty by 2030 without effective action. IPCC findings cited in the report say extreme-weather losses can be especially large relative to GDP in small island states, placing pressure on budgets and growth.

Bangladesh is highlighted as a warning case, with cyclones causing average annual economic losses of about $1 billion. By 2050, climate impacts could threaten up to one-third of agricultural GDP and displace more than 13 million people internally. The report calls for climate-resilient infrastructure, early-warning systems, agricultural adaptation, renewable energy and social protection.