Climate-driven health risks could cost the global economy at least $1.5tr in lost productivity by 2050 in food and agriculture, built environment and health and healthcare, a World Economic Forum report suggests.

Investment in climate health innovation, from climate-resistant crops to heat-stable medicines and new insurance models tackling coverage gaps, can reduce risks, unlock new market opportunities and drive long-term value however.

The $1.5 trillion estimate reflects losses in only the three sectors of food and agriculture, the built environment and health and healthcare under a mid-range scenario, suggesting the burden on the global economy could be far higher.

The report, Building Economic Resilience to the Health Impacts of Climate Change, developed in collaboration with Boston Consulting Group (BCG) highlight that adapting to extreme heat, infectious diseases and other health risks accelerating due to climate change is now a strategic business imperative.

Alongside shared disruptions, the analysis also outlines sector-specific vulnerabilities. In food and agriculture, climate health impacts could lead to $740bn in lost output, triggering serious consequences for global food security. In the built environment sector, climate health impacts are projected to result in productivity losses of $570bn. The health and healthcare sector stands to lose $200bn in productivity due to workforce climate health illness, while rising climate-driven disease rates among the wider population could compound demand pressures. The insurance industry, meanwhile, is projected to experience a sharp rise in climate health claims.

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