Caribbean loses over $2B annually due to climate disasters

Small Island Developing States (SIDS), with the Caribbean bearing the overwhelming share of the impact, are losing billions of dollars each year because of climate-related disasters, according to a new study released ahead of the COP31 climate conference.

The July 2026 briefing paper from ODI Global’s Resilient and Sustainable Islands Initiative estimates that climate change causes about $2.28 billion in economic loss and damage across SIDS each year. Over the 25 years from 2000 to 2024, climate-related losses reached approximately $57 billion.

The Caribbean is being hit hardest. The study found that Caribbean countries accounted for 93% of climate-attributable economic losses, 92% of deaths and 85% of people affected across small island states.

Storms are responsible for the vast majority of the financial damage, accounting for 82% of losses, while floods account for nearly 18%.

The researchers warned that the financial burden is expected to worsen. By 2050, storms alone could cause nearly $50 billion in additional climate-related losses. The findings come as countries prepare for COP31 climate conference, where vulnerable island states are expected to push wealthy nations for significantly greater climate financing.

The report said the Caribbean and other small states will require more financial support, not less, even as some developed countries cut their climate commitments. It noted an earlier announcement by the UK to deliver only a portion of the $2.18 billion it initially pledged to the Green Climate Fund for 2024-2027.

Researchers said the COP31 conference must therefore deliver meaningful financing commitments that match the growing scale of climate-related destruction facing vulnerable island nations.