WEF warns of US$2.3t annual climate losses, calls for private funding

Underinvestment leaves global infrastructure vulnerable to rising climate shocks, it said.

Global disaster losses could reach $2.3t a year as climate-related shocks intensify, the World Economic Forum (WEF) said in a report this week, warning that weak investment in critical infrastructure is heightening business and financial exposure.

Only 1% of global aid goes to disaster prevention, highlighting a global bias toward reactive spending. The WEF urged greater private investment in energy, transport, and logistics systems to strengthen resilience and reduce recovery costs.

To close the financing gap, the group proposed blended funding models involving public capital, development banks, and institutional investors. It added that wider adoption of early-warning systems and risk-based design standards could shorten recovery times and protect supply chains.

The report forms part of WEF’s Global Resilience Financing Initiative, released ahead of the COP30 summit in Brazil next year.