climateloss

Climateloss is a term used in climate economics and policy to describe the total value of losses resulting from climate change and its impacts. It encompasses direct physical damages from events such as floods, storms, droughts, and wildfires, as well as indirect consequences that arise from disrupted productivity, health costs, and changes in ecosystem services. The concept is closely related to, but distinct from, broader notions of climate risk, resilience, and adaptation planning, and it is often invoked in discussions about finance, insurance, and compensation for climate-related harms.

Components of climateloss typically include direct damages to infrastructure, homes, and commercial assets; losses in agricultural output and natural resources; and indirect effects such as reduced labor productivity, higher healthcare expenditures, disrupted education, and displacement of populations. Non-monetary losses—such as biodiversity loss, cultural heritage degradation, and declines in ecosystem services—are also acknowledged, though they can be more difficult to quantify in monetary terms.

Measuring climateloss relies on a mix of data sources and methods, including disaster databases, insurance claim records, and macroeconomic modelling. Attribution of losses to climate change, rather than natural variability, remains challenging, as does accounting for underinsurance, data gaps in developing regions, and the treatment of long-term slow-onset impacts like sea-level rise. Debates persist over the appropriate time horizon, discount rates, and whether to include non-economic damages in official tallies.

Policy relevance centers on the international emphasis on loss and damage within climate governance, including finance mechanisms, risk pooling, and strategies to prevent, mitigate, and compensate for climateloss.