Warren Buffett’s warning about facing a “truly staggering loss” due to the worsening climate crisis is worth considering. The billionaire’s message emphasizes the urgent need for preparedness.
Numerous, mostly unpublicized warnings from major insurance firms in 2025 echoed similar concerns. Allianz identified climate change as a significant threat to its portfolio. GallagherRE reported annual climate-related damages of $150 billion as a “new normal.” MunichRE cited substantial losses from climate impacts in 2024. Aviva noted extreme weather damages between 2014 and 2023. The insurance industry’s strong statements should be heeded.
Despite the increasing need to transition from fossil fuels, some oil and gas experts argue against it, often neglecting to mention the escalating costs of extreme weather events caused by climate change. However, even KAPSARC, a research institute in Saudi Arabia, acknowledges the challenge, warning of increasing difficulties in producing fresh water as oceans warm.
Allianz board member Gunther Thallinger cautions that rising temperatures may soon render many risks uninsurable. Business leaders are already preparing for worsening weather conditions, recognizing the reality and cost of these risks. The Paris Agreement, established in 2015, provides a framework for addressing these challenges.
While the pace of national shifts isn’t fast enough, progress is being made, as intended. In 2024, global investment in clean energy surpassed $1 trillion, exceeding fossil fuel investments. Under the Paris Agreement, over 190 countries are developing plans to phase out fossil fuels every five years.
The next set of plans, due this year, are expected from the E.U., India, and China, representing nearly 45% of global emissions. These three are crucial. For the E.U., this is a critical moment to embrace the “electricity” age and reduce reliance on Russian, Gulf, and U.S. gas. The International Energy Agency notes that clean energy protects consumers from price volatility.
China’s rapid expansion of clean energy has begun to reverse carbon emissions as part of a broader effort to electrify its economy and reduce its reliance on fossil fuels. The opportunity now is to solidify this turning point into a sustained decline, signaling a firm commitment to its dual carbon targets.
India faces worsening air pollution and extreme heat waves, experiencing over 1,400 extreme weather events in the past three decades, resulting in at least 80,000 deaths and $180 billion in economic losses.
Phasing out coal offers benefits for economies, public health, and the environment.
While diplomacy is challenging and slow, and the world faces obstacles, the alternative path of relying on fossil fuels would lead to rapidly increasing climate damages, spiking food prices, disrupted supply chains, instability, conflict, volatile markets, and erratic oil prices.
A 2024 survey across 125 countries revealed that many people want their governments to take greater action on the climate crisis. Brazil, the host of COP30, is aware of this as it prepares for a deal in Belem. As a special envoy, I am assisting them.
COP30 is expected to advance climate action, with over 190 countries supporting stronger measures, improved climate plans, and increased access to climate finance. The Paris Agreement initiated the fourth industrial revolution, and its momentum will continue.
The U.S. is the only country to have withdrawn from a global climate agreement, exiting the Kyoto Protocol in 2001 and the Paris Agreement in 2016 and again in 2025. History suggests others will not follow suit. It is more difficult to undo agreements than to negotiate them, and the Paris Agreement, established in 2015, continues to deliver results.
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