Cyclones, floods and wildfires caused more than $120 billion in insured losses and thousands of victims in 2025. The most affected were Asia, the USA and vulnerable states in the southern part of the globe.
Cyclones and floods in Southeast Asia this fall have killed more than 1,750 people and caused more than $25 billion in damage, while wildfires in California have killed more than 400 people and caused an estimated $60 billion in damage. The data comes from an analysis of the year’s costliest climate disasters, writes The Guardian.
The devastating floods in China, which displaced thousands, were the third costliest disaster, with around $12 billion in damage and at least 30 deaths.
The 10 worst climate disasters in 2025 generated more than $120 billion in insured losses, according to an annual report published by the charity Christian Aid.
Actual losses are, however, likely to be much higher, as only the costs covered by insurance can be measured with reasonable certainty. The human costs—lives lost, people displaced, and livelihoods destroyed—remain unquantified.
Devastating phenomena more frequent due to climate change
Such devastating events are often lumped under the label of “natural disasters” as if they were simply consequences of normal weather variations. However, the authors of the report argue that this perception is wrong.
Joanna Haigh, Emeritus Professor of Atmospheric Physics at Imperial College London, says such destructive events are becoming more frequent and more intense due to the climate crisis caused by human activity. “The world is paying an ever-increasing price for a crisis we already know how to solve. These disasters are not ‘natural’ – they are the inevitable result of the continued expansion of fossil fuel use and political delay.”she said.
Although the economic costs of disasters are often higher in developed countries, where people and companies can afford insurance, the real impact in developing countries can be much worse. Mohamed Adow, director of the Power Shift Africa think tank, said: “While rich countries count the financial losses, millions of people in Africa, Asia and the Caribbean count lives lost, homes destroyed and futures compromised. In 2026, governments must stop burying their heads in the sand and start providing real support to communities on the frontline.”
The damage is much greater in reality
The list of the 10 costliest disasters is far from reflecting the full extent of the damage suffered by the planet. The report also looked at 10 other major extreme weather events, each with losses under $1 billion, and numerous less expensive episodes were not included in either list.
The report also highlights the series of typhoons in the Philippines, which displaced more than 1.4 million people and caused an estimated $5 billion in damage.
All regions of the world were affected as disasters followed each other throughout the year. Iran’s drought threatens to evacuate Tehran’s 10 million residents. Floods hit the Democratic Republic of Congo in April, followed by Nigeria in May, where 700 people lost their lives. The floods in India and Pakistan killed more than 1,860 people, caused about $6 billion in damage, and affected more than 7 million people in Pakistan alone.
In the developed world, fires of record proportions have consumed the Iberian Peninsula, Canada has faced severe droughts and Scotland has experienced unprecedented heat waves.
The bill for climate disasters continues to rise
At this year’s UN climate summit, Cop30, held in November in Belém, rich countries agreed to triple funding to help poor countries adapt to the effects of extreme weather events. Even so, the amount—estimated to reach $120 billion by 2035—is far from covering all the protection needs of developing countries.
The bill for damage caused by extreme weather events will continue to rise until the world drastically cuts greenhouse gas emissions and phases out fossil fuels, Christian Aid chief executive Patrick Watt has warned.
“These climate disasters are a warning of what awaits us if we don’t accelerate the transition away from fossil fuels”he said. “They also highlight the urgent need for adaptation, particularly in the global south, where resources are limited and people are particularly vulnerable to climate shocks.”
At Cop30, the attempt to start developing roadmaps for the phase-out of fossil fuels was downgraded to the status of a voluntary initiative, not an obligation for all states. However, work will begin this year under the coordination of Brazil, the host of Cop30, and will continue at a special conference dedicated to fossil fuels, organized by Colombia in April, in which more than 80 countries supporting the initiative are expected to participate.
