Methodology, version 2
How the numbers are worked out
For each event Unadapted shows four things: what it cost, how often it happens at that place, what adapting would have cost, and how the two compare over the life of the measures. This page explains each step, the formulas, and where the numbers are weakest.
What counts as an event
A specific episode of a hazard that climate change makes more likely or more severe, which has already happened and caused harm: heatwaves, floods and extreme rainfall (including rain-triggered landslides), wildfires, droughts and weather-driven crop failures, tropical cyclones and severe storms, storm surges and coastal erosion, glacier and permafrost hazards, and ecological impacts such as mass coral bleaching.
Not included: earthquakes, volcanoes and tsunamis; industrial and transport accidents; forecasts or warnings with no impact yet; and research, policy or opinion pieces that don't describe one specific event. A cyclone and the floods and landslides it causes count as one event.
How events are found
- Every 6 hours, news searches across each hazard find new articles. Syndicated copies of the same story are skipped.
- An AI model reads a factual summary of each article and decides whether it reports a qualifying event, extracting the place, dates and toll.
- Articles about the same event are grouped together, by the model and by matching hazard, country and dates. Events causing only local disruption wait until more coverage confirms them.
- Each event is then analysed against numbered sources: its own coverage, reports of losses, the place's history and existing protection, and examples of adaptation elsewhere. Events are re-analysed a few days and a few weeks later, as loss figures firm up. Every version is kept.
The cost of an event
The total economic cost: damage to homes, property and infrastructure, losses to farming and business, and the cost of the emergency response. Where a government, insurer, reinsurer or the World Bank has published a total, we use it and mark it reported. Otherwise we build an estimate from the parts and mark it estimated. Every cost has a low, central and high figure.
All money is in US dollars at 2026 prices. Other currencies are converted at the rate of the time, and older figures are adjusted for inflation. Deaths are reported separately and are not given a money value.
How often it happens
Climate-driven hazards recur. Some towns flood every few years; parts of Spain's Mediterranean coast are hit by cut-off-low ("DANA") storms most autumns. Comparing the cost of adapting with a single event understates what adaptation is worth, because a flood wall or a warning system protects against every repeat over its life. So each event is placed in a hotspot: the hazard at the place one set of measures would protect, such as river flooding in one town. Events in the same hotspot are linked on the site.
For each hotspot we record:
- Earlier events of the same hazard at the same place, with dates, deaths and costs where known, and the year from which that list is reasonably complete.
- Return period: how often an event at least as damaging as this one happens there, in years. Published figures (such as "a 1-in-100-year flood") are used where they exist.
- Expected annual loss: the average yearly cost of this hazard in the protected area. It is built from the history (losses over the years covered, allowing for smaller events that went unrecorded) or from return periods (the cost of each size of event divided by its return period, summed). No climate trend is added; see limitations.
The cost of adapting
The package of measures appropriate for that place and hazard, sized for the affected area and priced at local costs, with a real precedent where one exists. For each measure:
- Up-front cost to build or set it up.
- Running cost a year, for operation and maintenance.
- Lifetime: years before it needs major replacement.
- Effectiveness: the share of this hazard's losses it avoids, for events within its design standard (for example a 1-in-100-year flood).
Measures are judged on their own, and overlapping measures that protect the same assets in the same way are not both counted. Two further shares capture the limits of any design: the share of this event's losses that were beyond what the measures are built for, and the share of expected annual losses that come from events that big.
How they compare
The model supplies the inputs above. The arithmetic is done in code, the same way for every event:
Combined effectiveness = 1 − (1 − e₁)(1 − e₂)…, capped at 95%
Each measure acts on the losses the others leave, so effectiveness doesn't simply add up, and no package avoids every loss.
Annualised cost = Σ (up-front cost × CRF) + Σ running costs
CRF, the capital recovery factor, spreads an up-front cost over the measure's life as equal yearly amounts: r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), with lifetime n in years and a discount rate r of 3% a year in real terms. That sits between the 2% in the US government's Circular A-4 (2023) and the 3.5% in the UK Treasury's Green Book.
Losses avoided a year = expected annual loss × combined effectiveness × (1 − share beyond design)
Lifetime return (benefit-cost ratio) = losses avoided a year ÷ annualised cost
Comparing yearly amounts like this is equivalent to comparing present values over the measures' lives. A ratio above 1 means the measures save more than they cost. The low and high ratios use the low and high expected annual loss.
Payback = up-front cost ÷ (losses avoided a year − running costs)
This event alone: losses avoided = event cost × combined effectiveness × (1 − this event's share beyond design)
A worked example
A town floods every few years, with expected losses of $6M a year. The latest flood cost $30M. The package is flood walls ($40M up front, $200K a year, 50 years, avoiding 80%) and a warning system ($1M, $100K a year, 10 years, avoiding 25%). 10% of expected losses come from floods bigger than the walls are built for.
- Combined effectiveness: 1 − (1 − 0.8)(1 − 0.25) = 85%
- Annualised cost: about $2M a year
- Losses avoided: $6M × 85% × 90% = about $4.6M a year
- Lifetime return: about 2.3×, paying back in about 10 years
Judged against the latest flood alone, the same package looks poor value: it would have avoided about $25.5M against $41M up front. That is why the lifetime return is the headline figure.
Is it climate change?
Each event carries one of three levels of evidence:
- Attribution study: A scientific study found climate change made this event more likely or more severe.
- Fits the warming trend: No study of this event yet, but warming is making events like it more frequent or intense in this region.
- Link uncertain: The evidence linking this kind of event to climate change is weak or mixed here.
"Fits the warming trend" relies on the IPCC's Sixth Assessment Report, which finds that some hazards, such as hot extremes, are becoming more frequent and intense almost everywhere, while the evidence for others, such as heavy rainfall in some regions, is weaker.
The cost shown is the full cost of the event, not just the part caused by climate change. Where a formal attribution study gives a probability ratio (PR: climate change made the event PR times more likely), we also show the climate-attributable share using the fraction of attributable risk, 1 − 1/PR (Stott and others, 2004), applied to the cost as in Newman and Noy (2023). For example, an event made twice as likely has half its risk, and so roughly half its cost, attributed to climate change. Adaptation pays off whatever caused the event, so the lifetime return doesn't depend on attribution.
Existing protection
Each event records what protection was in place or planned beforehand:
- No protection: No meaningful protection against this hazard was in place.
- Partly protected: Some protection existed, but not enough for an event like this.
- Protection planned, not built: Protection had been planned or approved, but wasn't built.
- Protection failed: Protection or warnings were in place but failed or were overwhelmed.
- Protection worked: Protection was in place and limited the damage.
Lives
Deaths are reported, not priced, and are left out of the cost comparison. That makes the lifetime return conservative for hazards where the main harm is loss of life, such as heatwaves. Where there is evidence that the measures save lives (for example heat-health warning systems or flood warnings), we show an estimate of the lives they would likely have saved, with its basis.
Uncertainty
Costs, expected losses and returns come as low, central and high figures, and each analysis carries a confidence level (low, medium or high) with its key assumptions. Reported costs for recent large events are usually the most reliable figures. Expected annual losses, effectiveness and costs for places with thin records are the least reliable.
Edge cases
- Repeat events at the same place share a hotspot and are linked; the history lists earlier ones, including those before this record began.
- Events across several countries are one event, filed under the hardest-hit place, with the other countries listed. The cost covers all of them.
- Chains of hazards (a cyclone, then floods, then landslides) are one event.
- Slow-onset events such as droughts or bleaching are recorded as one episode with start and end dates; recurrence is counted in episodes.
- Events beyond any reasonable defence count their excess as unavoidable, through the share beyond design.
- Protection that worked is recorded as such; those events show lower costs and the value of what was built.
- No published loss figure: the cost is estimated from its parts, marked as estimated, and usually given low confidence.
- Figures that change as assessments come in are handled by re-analysis; the latest version is shown.
- Duplicates (one event recorded twice) are merged when found.
Limitations
- Expected losses use the past, with no allowance for warming making events more frequent. In most places that makes the lifetime return an underestimate.
- Co-benefits of adaptation (green space, cooler streets, lower insurance premiums) are not counted.
- News coverage is uneven. Events in places with less English-language reporting, or no insurance market, are likely under-recorded and their costs underestimated.
- Adaptation costs come from benchmarks and comparable projects, not engineering studies of each site.
- These are estimates for public understanding, not appraisals to base an investment decision on.
AI and review
Articles are found with Exa's search. Screening and analysis are done by Anthropic's Claude Opus 5.5 working from the numbered sources on each event page. Analyses are published automatically and are not reviewed by a person before they appear. Every figure links to the sources it relies on, so it can be checked.
Changes
- Version 2, 6 October 2026. Added hotspots, event histories, return periods and expected annual loss; the lifetime return (benefit-cost ratio) replaced the single-event comparison as the headline; measures now have up-front and running costs, lifetimes and effectiveness; added existing protection, the climate-attributable share and lives saved; all money moved to 2026 dollars.
- Version 1, 5 October 2026. Compared each event's cost with the cost of adaptation measures for that event alone.
References
- Global Commission on Adaptation (2019). Adapt Now: A Global Call for Leadership on Climate Resilience.
- IPCC (2021). Climate Change 2021: The Physical Science Basis, Chapter 11: Weather and Climate Extreme Events in a Changing Climate.
- Newman, R. and Noy, I. (2023). The global costs of extreme weather that are attributable to climate change. Nature Communications 14, 6103.
- Stott, P. A., Stone, D. A. and Allen, M. R. (2004). Human contribution to the European heatwave of 2003. Nature 432, 610–614.
- HM Treasury (2022). The Green Book: Central Government Guidance on Appraisal and Evaluation.
- US Office of Management and Budget (2023). Circular A-4: Regulatory Analysis.