COP29: UN climate chief calls for urgent action to counter economic fallout

Issuing a stark warning on the massive economic toll of climate change, UN Climate Change chief Simon Stiell on Tuesday said its worsening impacts will put inflation on steroids and urged nations to take more decisive action.

Stiell, the executive secretary of the United Nations Convention on Climate Change (UNFCCC), also criticised the tendency to sideline climate action in national policies, calling it a recipe for disaster.

Addressing the World Leaders Climate Action Summit at the annual UN Climate Change conference -- COP29 here, he characterised the climate crisis as an economy-killer with impacts already draining up to 5 per cent of GDP in various countries.

Highlighting the urgent need for bold policies, Stiell underscored how climate impacts have evolved from a distant concern to an immediate financial threat, and emphasised that worsening climate events are no longer just a future generations' issue.

The climate crisis is a cost-of-living crisis, he said, pointing to how climate-induced disasters are driving up household and business costs, inflating the cost of goods and services globally.

Worsening climate impacts will put inflation on steroids unless every country can take bolder climate action, he warned.

Drawing parallels with the COVID-19 pandemic's impact on supply chains and economic stability, Stiell urged nations to treat climate finance as global inflation insurance rather than an optional agenda item.

He criticised the tendency to sideline climate action in national policies, calling it a recipe for disaster.

Stiell appealed to leaders not just to contain the economic fallout but to recognise the opportunities in transitioning to clean energy. Bolder climate action can drive economic opportunity and abundance everywhere, he noted, positioning clean energy as a foundation for creating jobs, boosting growth, and reducing pollution.

The UN climate chief also emphasised the importance of setting a robust global climate finance goal, framing it as a non-negotiable outcome for COP29.

Billions of people simply cannot afford for their government to leave COP29 without a global climate finance goal, he stressed, urging leaders to communicate their expectations to their negotiators to expedite cooperation and avoid diplomatic standoffs.

Stiell also called for renewed commitments on national climate plans (NDCs) and targets, stating that a concerted effort would enable all nations to capitalise on clean energy advancements and climate resilience.