In 2024 alone, the world economy lost $320 billion in climate-related disasters. Statistically, this is more than the GDP of over 150 countries, affecting the economies.
Amidst this devastation, the Partnership for Green Development (P4G) summit held in Hanoi between the 16th and 17th April emphasized that climate action isn’t just good for the planet—it’s smart economics.
UN Deputy Secretary-General Amina Mohammed, addressing leaders from government, business, and civil societies at the summit, said, “Every dollar invested in climate adaptation can generate a return of up to 10 times.”
Quoting Vietnamese Zen Master Thich Nhat Hanh, she added, “Hope is important because it can make the present moment less difficult to bear. If we believe tomorrow will be better, we can bear a hardship today.”
The Cost of Inaction
A UN report indicates that developing countries lose approximately 1% of their GDP annually due to climate disasters, compared to 0.1-0.3% in developed nations. For instance, in 2024, Kenya experienced one of the most violent El Niño episodes since 1950, leading to severe flooding that claimed 188 lives and displaced 200,000 people.
Moreover, in 2023, Latin America suffered record heat, floods, and droughts, leading to at least $21 billion in economic damage and exacerbating food insecurity for 13.8 million people.
The humanitarian cost has been steep. According to an annual report by the International Displacement Monitoring Centre, Climate-related disasters displaced over 26 million people in 2023, with floods and storms accounting for the majority of these displacements.
Additionally, climate disasters claimed at least 12,000 lives globally in 2023, a 30% increase from the previous year, and over half of the fatalities occurred in low-income or lower-middle-income countries, many of which contribute minimally to global emissions.
Climate Investment
According to UN Deputy Secretary-General Amina Mohammed, every dollar invested in climate adaptation can generate a return of up to 10 times. The P4G summit highlighted success in innovations in green growth.
For example, Transforming Africa’s Bamboo is a P4G partnership that uses native bamboo in Ethiopia to make durable construction materials such as frames for dry walls. African Bamboo, the business partner in the partnership, uses an intensified manufacturing process that halves processing time, cuts energy consumption by more than 30%, and reduces costs by more than 61%, while producing a material that is two times stronger than steel.
The company has a competitive advantage because of its focus on biodiversity and climate change. It has created a value of €47.7 million to date with 100% offtake from SECA, a family-owned Austrian business that is one of the leading wood industry companies in Europe.
Besides, recent years have seen a growth in green energy at a reduced cost. The significant cost reductions in wind, solar, and battery storage technologies make them the cheapest sources of new electricity in many markets. Solar panel prices have dropped to as low as $0.10 per watt, and Lithium-ion battery pack prices fell 14% to a record low of $139/kWh in 2023. Renewables accounted for 92.5 per cent of all new power capacity added globally last year, and clean power surpassed 40 per cent of global electricity generation for the first time.
Highlighting the role of collaboration, Amina Mohamed said Initiatives like the Just Energy Transition Partnerships and P4G’s public-private partnership exemplify the power of collaboration in transforming energy, water, and food systems.
Also highlighting Vietnam’s leadership in clean energy, Ms. Mohammed praised the country’s bold shift from coal, which is not only combating climate change but also promoting a fairer and more equal future. She called this moment a “rare opportunity” to usher in a new economic era that ensures energy access, affordability, and security while creating zero-carbon, disaster-resilient, and sustainable societies.
Ms. Mohamed emphasized the importance of the next round of Nationally Determined Contributions (NDCs), citing the need for $2.4 trillion per year to flow to emerging and developing economies outside China by 2030 to keep the 1.5-degree target within reach and deliver on the SDGs.
The UN deputy chief urged government leaders to accelerate the implementation of cost-effective solutions and drive change through smart policies and reforms at all levels, and encouraged leaders to turn obstacles into business opportunities and drive real investments in climate and sustainable development.
“Investment is key,” she stressed, citing the need for $2.4 trillion per year to flow to emerging and developing economies outside China by 2030 to keep the 1.5-degree target within reach and deliver on the SDGs.
