Last year was the hottest ever recorded in the history of mankind. With an average global temperature 1.48°C higher than pre-industrial levels, we are close to the 1.5°C limit established by the Paris Climate Agreement which is thought will unleash far more severe climate change impacts, including more frequent and severe droughts, heatwaves and rainfall.
However, the extremely hot temperatures were only one example of the impact of climate change in 2023. Wildfires, storms, floods and droughts that caused the loss of hundreds of lives and pushed thousands into poverty made the headlines of the world media.
To estimate the impact of the natural disasters on communities in 2023, the non-profit organization, Christian Aid, carried out a study to classify the costliest natural disasters. Surprisingly, or perhaps not, the study reveals that the communities impacted the most by natural disasters are those whose greenhouse gas emissions are lower than those of developed nations.
The study looked at 20 catastrophic disasters that occurred in 14 nations in 2023. A significant number of those impacted by climate disasters work in the weather-sensitive agricultural sector. Unfortunately, those employed in agriculture in less developed countries had to bear the greatest cost, in part due to the fact that governments were unable to commit large sums of money to preventative or rehabilitation projects.
Worst natural disasters in terms of costs: Analyzing the methodology
To determine the financial impact of the costliest climate disasters, the authors used the “per capita cost approach”. By applying this method, the total losses from each disaster were divided by the entire population of the area that was impacted to determine the approximate financial burden on each individual.
This approach provides a more personalized understanding of the disaster’s effects by emphasizing the financial challenges experienced by the typical individual as opposed to simply the total economic cost.
* EM-DAT is a global database that contains details of more than 26,000 mass catastrophes that have occurred since 1900.
It is to be noted that the organization did not take into account earthquakes where there is insufficient evidence to link these to climate change.
List of costliest natural disasters: Results of the study
Christian Aid discovered that, with an average cost per person of just over US$4,000, the August wildfires that hit Hawaii had the highest cost compared to any other natural catastrophe. Moreover, the per capita cost was significantly higher than the second disaster on the list – the storm that hit Guam in May 2023 which cost almost US$1,500 per person.
Vanuatu was the third most impacted nation with the tropical storms Judy and Kevin, both classified as Category 4, causing significant devastation to this small nation, with the per capita cost being almost US$1,000.
This table shows the table with 10 costliest disasters according to the Christian Aid study.
Source: Christian Aid
Wildfire in Hawaii in August 2023
Cost per capita: US$4,161
There has been a surge in the frequency of wildfires in Hawaii. The lengthy history of drought and higher temperatures are possibly related to the conditions that caused the most recent wildfire to have had such an enormous impact.
The wildfire, which mostly affected Hawaii’s island of Maui, took 181 lives and injured 7,695 people –roughly 1 in 20 of Maui’s population.
Furthermore, the natural disaster seriously affected small businesses in Hawaii which in turn left numerous people unemployed. The wildfire’s entire economic impact is an estimated US$6 billion. With this in mind, the economic growth that state experts previously predicted for 2024 has decreased from 2% to 1.5%. Furthermore, the consequences of the storm will continue to impact upon the economy of the state in the near future.
The storm in Guam, May 2023
Cost per capita: US$1,455
Located around 2,000 kms east of the Philippines, the US territory of Guam was severely impacted by tropical storm Mawar, which lasted approximately 15 hours, starting at midday on May 23 and ending early on May 24.
With winds of up to 145 mph, or more than 230 km/h, the storm proved to be the fiercest that Guam had seen in decades, damaging countless buildings and tearing down trees.
The cyclone was predicted to have caused US$250 million in economic damage and given that the population of Guam is almost 170,000, this means that the damage cost per person was around US$1,470. Although there have been reports of minor accidents, no residents died or suffered serious injuries. The majority of residences in the area remained without access to essential utilities such as power and water as well the internet for over a week after the storm.
Vanuatu storm in March 2023
Cost per capita: US$947
In March, this island nation was hit by two Category 4 tropical storms dubbed Judy and Kevin which caused significant damage and affected over 300,000 individuals, or more than 60% of the country’s total population. Surprisingly, however, neither of the two powerful tropical storms were blamed for any fatalities.
On average, the two storms had a cost of nearly US$1,000 per person, which is about 30% of the nation’s US$3,000 GDP per capita (making Vanuatu a lower-middle income nation, based on World Bank categorization). The natural calamity affected the nation’s health services, impacted over 40,000 people, and led to a decrease in GDP growth from 3.6% to 3%
Final word
Climate-related disasters disproportionately afflict the poorest countries – those that are least prepared. In these countries, the agricultural sector employs the largest number of people but it is the least safeguarded against natural calamities. Moreover, the study found that these nations are the least responsible for the calamities that affect them, with the level of fossil fuels burned being much lower compared to developed countries.
See also: How can development aid help build resilience to natural disasters?
