Extreme weather is set to drive more than $20 trillion in global spending over the next decade, creating major opportunities for companies focused on climate adaptation, infrastructure resilience and energy efficiency, according to a new Bloomberg Intelligence report.
The report, The Climate Economy 2026 Outlook, estimates that climate-related costs reached $1.4 trillion globally in 2025 alone, equivalent to around 1.2% of global GDP, with spending on disaster recovery, insurance, infrastructure hardening and energy efficiency continuing to rise. Bloomberg Intelligence warns that if historical trends persist, climate-related spending could reach $24 trillion between 2026 and 2035.
According to the analysis, more than $20 trillion has already been spent globally on weather-related damage, insurance premiums, repairs and resilience measures since 2000. Spending has accelerated sharply over successive decades, rising from $2.4 trillion between 1996 and 2005 to $12.2 trillion between 2016 and 2025.
Andrew John Stevenson, Senior ESG Analyst at Bloomberg Intelligence, said:
“With climate costs now rivalling a major financial crisis and forecast to double to $24 trillion over the next decade if historical trends persist, demand is poised to accelerate further for companies focused on repair and maintenance (Wartsila, Dycom), climate security (Saab, BWX Technologies), grid and AI efficiency (ABB, Vertiv) and low-carbon outputs (Steel Dynamics, Yunnan Aluminium).”
The report argues that growing expenditure on adaptation and mitigation is creating a significant transfer of wealth across the global economy, benefiting companies involved in climate resilience, infrastructure upgrades, energy efficiency and disaster recovery. Bloomberg Intelligence’s basket of 275 companies focused on adaptation and mitigation outperformed the broader S&P Global 1200 Index by 31.8 percentage points in the year to 19 April 2026.
Among the strongest themes identified in the report is the growing importance of energy efficiency. Bloomberg Intelligence notes that efficiency improvements across power, transport, industry and buildings saved an estimated 11.5 exajoules of energy in 2025, more than double the 4.8 exajoules generated by newly added solar and wind capacity. The report suggests efficiency measures could play a much larger role in reducing emissions and energy costs than is often recognised.
The research also highlights rising investment in grid modernisation and AI infrastructure efficiency. Global data-centre electricity demand is projected to more than double by 2030, increasing pressure on power networks and creating opportunities for suppliers of grid equipment, cooling systems and power-management technologies.
Bloomberg Intelligence further identifies climate security as an emerging growth area. Melting Arctic sea ice is opening new shipping routes and driving increased defence and infrastructure spending by the US, Canada and European nations, benefiting companies involved in Arctic operations, naval systems and critical infrastructure protection.
However, the report warns that the economic burden of climate impacts will increasingly fall on consumers, insurers and public authorities. Rising insurance premiums, uninsured losses and growing demands on disaster-recovery budgets are creating pressures for households, municipalities and governments worldwide.
Bloomberg Intelligence concludes that understanding exposure to climate-related costs is becoming an increasingly important factor for investors, as spending on resilience, efficiency and adaptation reshapes markets and investment opportunities across multiple sectors.
