The cost of the climate crisis keeps going up.
In terms of damage to the atmosphere and life on Earth, this may seem obvious. But the overall price tag of global warming has long been the subject of debate. Now, new data from Bloomberg Intelligence has put a number to the cost of burning fossil fuels.It’s averaged about $500 billion a year since 2016. That’s equal to about 2% of U.S. gross domestic product, according to Bloomberg Intelligence senior ESG climate analyst Andrew John Stevenson. Those figures represent the combined expenses from property damages, power outages, government spending and construction-surge inflation at the state level, he says.
For broader context, the estimated financial damages related to global warming have totaled almost $7 trillion over the past 30 years, Stevenson says. And this tally excludes things like lost wages tied to wildfires or extreme heat, as well as rising property-insurance premiums.
While certainly a sober reminder of the destruction wreaked by humanity, Stevenson notes there’s another way to look at the financial impact of the climate crisis. “Climate-related spending has made up 32% of GDP growth since 2016,” he says. Climate events are “a growing, visible part of the U.S. economy, creating tailwinds for a few companies.”
Stevenson acknowledges, of course, that such disasters create “headwinds for the overwhelming majority of individuals, companies and the government.”