Caribbean Loses $2 Billion Annually Due to Climate Change

THE CARIBBEAN – Climate change and climate-related disasters are costing small island developing states, particularly in the Caribbean, billions of dollars each year, according to a new study released ahead of the COP31 climate conference.

A briefing paper from ODI Global’s Resilient and Sustainable Islands Initiative estimates annual economic losses at about $2.28 billion across these small states, with total losses reaching approximately $57 billion between 2000 and 2024.

The Caribbean is the hardest-hit region, accounting for 93 percent of climate-attributable economic losses and 92 percent of deaths. About 85 percent of people affected were also from small island states.

Storms account for the vast majority of financial damage, responsible for 82 percent of total losses.

The report comes as countries prepare for COP31, where vulnerable island nations are expected to push for greater climate financing from wealthier countries.

It stresses the urgent need for increased financial support, even as some developed nations have pledged only a portion of the initial $2.18 billion promised to the Green Climate Fund for 2024 to 2027.