How Climate Shocks Could Break the Economy | Edmond Rhys Jones | TED
In his illuminating TED Talk, “How Climate Shocks Could Break the Economy,” Edmond Rhys Jones delves into the intricate connections between climate change and economic stability. Reflecting on the devastating climate events of 2021, including catastrophic floods and droughts, he highlights a troubling gap in understanding the economic repercussions of climate shocks. While the scientific consensus warns of increased frequency and intensity of natural disasters, traditional economic models often fail to capture this turbulence adequately.
Jones argues that it’s crucial to assess the commercial relationships and financial mechanisms that link businesses in order to better prepare for potential upheavals. He presents striking examples, such as the cascading effects of hurricanes on insurance markets and the coffee industry, to illustrate how climate risks translate into widespread financial disruptions.
He emphasizes that climate change is already causing significant strains on the economy, with the potential to reach a tipping point where the financial system can no longer manage these risks. To navigate this uncertain future, Jones advocates leveraging complex dynamic system models and simulations to better anticipate disruptions and innovate resilience strategies.
Ultimately, he stresses that understanding these challenges is not just a matter of assessing risk but also a pathway to unlocking opportunities for economic resilience and investment in sustainable solutions. This talk serves as a call to action for investors and policymakers alike to prioritize climate resilience in the face of an unprecedented global challenge.
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Video “How Climate Shocks Could Break the Economy | Edmond Rhys Jones | TED” was uploaded on 12/08/2025 to Youtube Channel TED