Dhaka, April 1 -- In 2025, the economic reality of physical climate risk hit hard. Hurricanes drove sharp home insurance premium hikes and cancellations along Florida's coast. UK floods pushed up claims in high-risk areas. In the Philippines, scientists attributed 30 percent of the damage from Typhoon Fung-wong directly to climate change. These were not isolated weather events. They were financial events, and markets are still ‌not pricing them as such.

The numbers are stark. Extreme weather caused $2.3 trillion in losses between 2000 and 2023, disrupting operations, supply chains and broader economic and natural systems. Physical climate risk now threatens credit ratings, insurability and public finances - as well as the long-term...