UN Climate Chief Warns Inaction on Emissions Will Deliver 'Inflation on Steroids'
"Climate finance is global inflation insurance. Rampant climate costs should be public enemy number one," the U.N. official told world leaders at COP29.
As he addressed world leaders at the United Nations Climate Change Conference in Baku, Azerbaijan on Tuesday, U.N. climate chief Simon Stiell made the case that action against the planetary emergency can help combat an economic problem plaguing nations around the world: inflation.
Far from a threat reserved for future generations, Stiell told ministers gathered for day one of the conference's World Leaders Climate Action Summit that the climate crisis was "fast becoming an economy killer," already slashing some nations' gross domestic products by up to 5%.
"The climate crisis is a cost-of-living crisis," Still said, "because climate disasters are driving up costs for households and businesses. Worsening climate impacts will put inflation on steroids unless every country can take bolder climate action."
Stiell's remarks come amid growing discussion of the impact of inflation on political stability following the victory of Donald Trump in the U.S. presidential election last week. In the wake of Trump's win, commenters have pointed out that almost every country that voted in 2024 voted to oust the incumbent party, and inflation following the Covid-19 pandemic and Russia's invasion of Ukraine is one prominent explanation.
Stiell told the leaders gathered at COP29 that they should learn from that inflation spike when making decisions about climate.
"Let's learn the lessons from the pandemic—when billions suffered because we didn't take the collective action fast enough when supply chains were smashed," Stiell said. "Let's not make that mistake again."
"Climate finance is global inflation insurance," Stiell continued. "Rampant climate costs should be public enemy number one."
"Unless emissions plummet and adaptation soars, every economy will face far greater fury."
In his remarks to the leaders summit, U.N. Secretary-General António Guterres also emphasized the economic impacts of climate-fueled disasters.
"No country is spared," Guterres said. "In our global economy, supply chain shocks raise costs—everywhere. Decimated harvests push up food prices—everywhere. Destroyed homes increase insurance premiums—everywhere."
Guterres also tied the climate emergency to economic inequality, citing a recent Oxfam study finding that billionaires emit more greenhouse gases in an hour and a half than an ordinary person will during their entire life.
"This is a story of avoidable injustice. The rich cause the problem, the poor pay the highest price," Guterres said, adding that "unless emissions plummet and adaptation soars, every economy will face far greater fury."
However, both U.N. leaders saw hope in a rapid and equitable transition to renewable energy.
"Bolder climate action can drive economic opportunity and abundance everywhere. Cheap, clean energy can be the bedrock of your economies. It means more jobs, more growth, less pollution choking cities, healthier citizens, and stronger businesses," Stiell said.
Guterres argued that "the economic imperative is clearer and more compelling with every renewables roll out, every innovation, and every price drop" and called doubling down on fossil fuels "absurd."
"The clean energy revolution is here," Guterres continued. "No group, no business, and no government can stop it. But you can and must ensure it is fair, and fast enough to limit global temperature rise to 1.5°C."
Currently, national policies put the world on track for 3.1°C of heating, which scientists warn would have devastating consequences for ecosystems and human communities.
Both Stiell and Guterres urged leaders to rapidly reduce their climate pollution and agree to a new finance goal at COP29 to help developing countries fund their green transitions and adapt to increasing climate impacts.
"On climate finance, the world must pay up, or humanity will pay the price," Guterres said.
Stiell warned that "billions of people simply cannot afford for their government to leave COP29 without a global climate finance goal."
"These are not easy times, but despair is no strategy, and it's not warranted," Stiell concluded. "Our process is strong, and it will endure. After all, international cooperation is the only way humanity survives global heating. The time for hand-wringing is over; so let's get on with the job."
