The text discusses the escalating impacts of climate change evidenced by extreme weather events worldwide. It highlights the rising public and corporate support for climate action as a reaction to these events, further facilitated by falling costs of renewable energy technologies. This shift is projected to result in significant capital reallocation affecting global economies and populations.
As of 2025, the detrimental impacts of climate change are becoming increasingly evident worldwide. Significant events such as the devastating flooding in Pakistan in 2022, which affected one-third of the nation, along with record temperatures of over 50°C in India, and extensive wildfires in Canada that enveloped numerous U.S. cities in smoke, illustrate this alarming trend. While individual events cannot be exclusively blamed on climate change, the frequency and severity of these occurrences align closely with predictions made by climate models.
The convergence of climate-related disasters and the rapid decline in renewable energy costs is fostering widespread support for climate action. This momentum is expected to redirect trillions of dollars in investment, fundamentally altering the economic landscape and daily lives of billions globally.
Original Source: www.hks.harvard.edu
