Extreme Weather in 2024: A Wake-Up Call for Climate Action

Ladies and gentlemen, buckle up! The year 2024 has been a rollercoaster ride of extreme weather events that have forced millions to flee their homes, marking the most significant displacement in 16 years. This is not just a weather anomaly; it's a wake-up call for climate action. The data is in, and it's screaming at us: climate change is here, and it's here to stay.



The United Nations Office for Disaster Risk Reduction reports that climate-related disasters have skyrocketed from 3656 events in the period 1980–1999 to 6681 events in the period 2000–2019. This is not a trend; it's a crisis. The frequency and intensity of these events have resulted in significant volatility and heightened risks in the global energy market. Remember the severe cold in Europe at the end of 2021? It exacerbated the energy crisis, causing sharp fluctuations in global energy prices and rapid cross-market risk contagion. This is not just about weather; it's about systemic risk.

The economic impacts of these extreme weather events have been devastating. Supply chains have been disrupted, inflationary pressures have surged, and the cost of inaction is mounting. From 1993 to 2022, more than 765,000 lives were lost and direct economic losses of nearly USD 4.2 trillion (inflation-adjusted) were recorded, driven by more than 9,400 extreme weather events. This is not just about numbers; it's about people, communities, and economies.

Governments and international organizations have responded with various measures to mitigate risks and support affected populations. China, as the world's largest trading nation, has established long-term stable energy trade partnerships with multiple countries, particularly through the Belt and Road Initiative. This initiative aims to enhance energy cooperation and improve the stability and reliability of the energy market supply, thereby supporting China's energy transition. Additionally, China launched a national carbon market in 2021, which serves as an effective tool to address climate change and provides a potential green option for hedging energy risks.

But this is not enough. We need to do more, and we need to do it now. The involvement of international political interests in this process has contributed to the rise in policy uncertainty, which directly or indirectly impacts business investments and decisions, leading to more pronounced price fluctuations in energy commodities highly correlated with carbon. This is not just about policy; it's about action.

So, what do we do? We need to integrate climate and trade policies, such as border carbon adjustments, related emission trading schemes, or certification programs. We need to promote energy transition and reduce carbon emissions. We need to enhance energy cooperation and improve the stability and reliability of the energy market supply. We need to support affected populations and mitigate risks. This is not just about survival; it's about thriving in a changing climate.

In conclusion, the extreme weather events of 2024 have forced most people to flee in 16 years, marking a significant displacement. This is a wake-up call for climate action. We need to act now, and we need to act together. The future of our planet depends on it.