The frequency of disasters has quadrupled in the past two decades compared to the 1970s. These catastrophic events, with their increasing scale and intensity, wreak havoc in the lives of millions and lead to staggering financial losses, underlining the urgent need for action.
Official reports often focus on the damage to infrastructure; however, these events also have numerous indirect consequences for nature, public health, education and livelihoods, with their ripple effects lasting for years.
Considering all consequences, the annual cost of disasters could be as high as USD 2.3 trillion.
Investing in prevention to reduce the high cost
Some regions are disproportionately exposed to disasters and the effects of climate change, amplified by their dependence on rain-fed agriculture and weak early warning systems. Africa, for example, is facing a great burden from floods, droughts, and cyclones, threatening its population and economies. UNEP works with partners to help restore healthy ecosystems and demonstrate their role as natural barriers that can reduce disaster risks while supporting livelihoods.
This year is the biggest wakeup call we have seen in Tanzania in terms of what climate change is doing to rural families, says Mirey Atallah, Head of the United Nations Environment Programme (UNEP) Adaptation and Resilience Branch. We need fast action on mitigation and adaptation. Otherwise, it wont only be the climate that is breaking down but also the communities themselves.
For the past seven years, UNEP, the Tanzanian Government, and the Global Environment Facility have been working to help communities adapt to drier weather and more erratic rainfall patterns by planting more than 350,000 trees and stabilizing riverbanks. This project illustrates how every dollar invested in ecosystem-based resilience can reduce future losses, protect livelihoods and save lives.
The project has provided a safety net against the volatility of climate change, says Atallah. Now, when extreme weather decimates farmland, families have other alternatives to fall back on.
Harnessing nature against disasters
The degradation of ecosystems, such as forests, wetlands and coastal systems, is driving disaster risk, making communities more vulnerable.Ecosystem-based Disaster Risk Reduction (Eco-DRR) offers a powerful solution by restoring and protecting these natural systems to reduce hazards, build resilience, and safeguard both people and nature.
Our mangroves are the only protection we have. Without them, everything hits us harder, says Yolanda Garcs Ortiz, a resident of Cuerval village on Colombias Pacific coast.
A strong nature-based solution (NbS) to the effects of climate change, mangroves can reduce tidal wave energy by up to 70 per cent and cut flood depths by 20 per cent. They are five times more cost-effective than artificial coastal defenses and can save billions of dollars in damages. However, over the last 40 years, Colombia has lost 14 per cent of its mangroves.
Harnessing the benefits of these protective ecosystems, the Cuerva Sostenible initiative is working with communities to restore Colombian mangroves and shield its Pacific coast from storms, offering cost-effective long-term protection while also supporting the livelihoods of local people.
Such initiatives not only help protect the environment and reduce disaster consequences they make sound economic sense, says Cecilia Aipira, Chief of the Disasters and Conflicts Branch at UNEP. Scaling up the financing is what we urgently need.
Innovative financing
By shifting financing from marginal allocations to mainstream investments in NbS, countries can strengthen resilience and reduce disaster risks while saving costs. Ultimately, this strategy will yield economic growth and development outcomes.
However, despite their proven benefits, today only a small share of global climate funding reaches disaster risk reduction, and only 3 per cent of it goes to NbS. Annual investments must triple to US$542 billion by 2030 to meet targets for climate, biodiversity, land restoration and disaster resilience.
New funds and innovative financing mechanisms hold promise for the future. The Green Climate Fund (GCF) demonstrates how large-scale financing can integrate NbS into climate adaptation. With over $10.3 billion pledged, 3.5 billion committed and 1.4 billion invested, it shows how public resources can channel private sector investment into innovative and cost-effective climate solutions. Public funding from the GCF is used to create a platform that encourages and channels private sector investment into climate solutions.
Innovative mechanisms such as pay-for-success and blended finance models and debt-for-nature swaps offer developing countries new ways to finance Eco-DRR and other NbS, tying funds to measurable outcomes. These initiatives help unlock resources for climate resilience -- and protect ecosystems and the people who depend on them.
Disaster risk reduction in numbers:
- In 2024, 393 disasters affected 167 million people, resulting in over 16,700 deaths and more than US$240 billion in material losses.
- Both direct and indirect impacts included, the estimated annual cost of disasters could be as high as US$2.3 trillion 11 times higher than the numbers usually reported.
- Despite their proven effectiveness, NbS are sorely underfunded, receiving around US$200 billion only a third of levels needed to reach climate, biodiversity and land degradation targets by 2030. Most funds come from public sources, with the private sector contributing only 18 per cent.
- Annual investments in NbS must more than double by 2025 (from US$200 billion to $436 billion) and nearly triple to $542 billion by 2030.
- Studies show that every US$1 spent on disaster risk reduction delivers an average return of $15 in terms of averted future disaster recovery costs.
- Each EUR1invested in creating water detention areas in Europe can save EUR4 in avoided damages in a 3C warming scenario.
This story supports the International Day for Disaster Risk Reduction 2025, under the theme Fund Resilience, Not Disasters.
