Underpriced climate risks threaten global economy, and other climate and nature news

The climate crisis is reshaping entire economies, with current economic models missing the real risks, from extreme weather to the breaching of tipping points.

Led by the University of Exeter’s Green Futures Solutions team, in partnership with Carbon Tracker, the Recalibrating Climate Risk report highlights how the focus on GDP misses much of the harm, including deaths, inequality, displacement, ecosystem loss and long‑term damage to wellbeing and productivity.

"Without broader metrics, climate risks will continue to be systematically discounted in macroeconomic planning," the authors warn.

Climate risks build up and interact over time, turning repeated shocks into systemic crises that standard models fail to capture. The report highlights that uncertainty and tail risks increase sharply beyond 2°C of warming, making precise damage estimates less reliable as potential losses grow rapidly.

So, what can be done? The report maps out the implications for regulators, banks, funds and other actors.

January has brought a turbulent start to the year, with extreme weather events worldwide taking a heavy toll, the World Meteorological Organization (WMO) reports.

"It is no wonder that extreme weather consistently features as one of the top risks in the World Economic Forum’s flagship annual Global Risks Report. The number of people affected by weather and climate-related disasters continues to rise, year by year, and the terrible human impacts of this have been apparent on a day-by-day basis this January," said WMO Secretary-General Celeste Saulo.

Here are some of the extreme weather events seen around the world in January:

Scientists launch AI-powered weather-forecasting system: Hong Kong University's new "DDMS" model can predict extreme weather, including thunderstorms and heavy rainfall, up to four hours ahead, improving accuracy by more than 15%.

Malaysia bans e-waste imports: One of the world's top importers of plastic waste, the country has imposed a ban on these materials due to their harmful impact on the environment.

EIB seeks to ease carbon market concerns: The European Investment Bank will bring forward $3.5 billion to help governments protect poorer citizens ahead of the European Union’s new carbon market, ETS2 (Emissions Trading System 2). The funds will support cleaner heating and transport options before CO2 pricing on fuels begins in 2028.

World's biggest environmental services payment platform in production: Agrotools, a leading Brazilian agricultural data services firm, is building a platform to pay farmers market-rate leases to maintain native forests. The scheme could preserve 30 million hectares of high-quality farmland, attract $15 billion over five years and help buyers offset carbon emissions.

Davos 2026: How can we build prosperity within planetary boundaries? This year's Annual Meeting will be remembered as a week when geopolitics owned the stage – yet the climate and nature crisis persisted in the wings. "We are at a really, really decisive juncture,” announced Johan Rockström, Director of the Potsdam Institute for Climate Impact Research, and one of the world’s most highly regarded climate scientists. "Time is running out," he told delegates – "but it’s not too late".

Opening a session on climate and nature, Rockström presented key information to guide the panel discussion. He highlighted how, for the past 12,000 years, the planet has enjoyed an extraordinarily stable climate, giving human life a safe space within which to thrive. Yet within the next three to five years, scientists expect the planet to conclusively breach the 1.5°C barrier. "We are heading towards a disastrous, unmanageable in terms of scientific evidence, 3°C world in the next 75 years," he warned.

Find out what other leaders at Davos 2026 had to say on nature and climate in this roundup.

This mountaineer fought to survive on one of the world’s most dangerous mountains: Anurag Maloo survived a 300-metre fall into a glacier's crevasse and spent 72 hours trapped before a rescue team found him unconscious. He underwent extensive rehabilitation, having lost fingers on his right hand and needing to relearn how to stand and walk. Increasingly unpredictable mountain conditions can make such environments more hazardous for explorers and local communities. Watch his story in the video below: