Climate Risk Index 2025

Why in News?

Recently, the 'Climate Risk Index' (CRI), 2025 was released by environmental think tank 'Germanwatch'.

About Climate Risk Index:

• Introduction: This index ranks countries by assessing the economic impact and risks of climate-related extreme weather events on countries.
  • The most affected country is given the highest rank in the index.
• Start: Since the year 2006
• Countries included: 171 countries have been included in the index for the year 2025.
  • Some countries have not been included due to lack of data.
• Risk Categories: The Index analyses the impacts of extreme weather events through three risk categories:
  • Hydrology
  • Meteorology
  • Climatology
• Measurement Period: The Index reflects the impact of extreme events on countries in the two years prior to publication and over the past 30 years.
  • Data Source: The report’s findings are based on extreme weather event data from the International Disaster Database and socio-economic data from the International Monetary Fund.
• Key Indicators: The Index considers absolute and relative impacts using the following indicators:
  • Economic Losses
  • Mortality
  • People Affected
• Recommendations: The latest edition highlights the growing losses and the urgent need for stronger climate resilience and action.

Key findings of the Index

• Top countries most affected in 2022:
  • Pakistan
  • Belize
  • Italy
• Most affected countries in the period 1993 to 2022:
  • Dominica
  • China
  • Honduras
• The most affected countries during the same period are also divided into two groups -
  • Countries most affected by very rare extreme events: Dominica, Honduras, Myanmar, Vanuatu
  •  Countries affected by frequent extreme events: China, India, Philippines.
• From 1993 to 2022, more than 765,000 people died worldwide and direct losses amounted to approximately US$4.2 trillion.
• Extreme events such as floods, storms, heatwaves and droughts had the most prominent impacts from short-term and long-term perspectives.
• According to the Index, human-induced climate change affects the frequency and intensity of extreme weather events and leads to widespread adverse climate impacts.
• New Collective Quantified Goals (NCQG): According to the Index, the COP-29 conference failed to deliver ambitious New Collective Quantified Goals (NCQG) on climate finance.
• According to the Index, due to lack of ambition and action towards mitigation, even high-income countries are likely to be severely affected.

India's position:

• India is among the 10 countries most affected by extreme weather events between 1993 and 2022.
  • India contributed 10% of global deaths and 4.3% of economic losses due to such events.
• During the same period, India was most affected by floods, heatwaves and cyclones.

Key recommendations:

• High-income and high-emitting countries need to step up mitigation action, including the implementation of higher climate targets and actions with new Nationally Determined Contributions (NDCs) to limit temperature rise to below 1.5℃ and contain impacts to a manageable level.
• There is an urgent need for increased financial support from the international community to the most vulnerable countries to prevent the severe consequences of climate impacts.
• In times of geopolitical turmoil and diminishing commitments, developed countries must step up to their responsibilities and provide the necessary support to ensure a more resilient and sustainable future.