Climate change is no longer a future threat — it is a current and escalating crisis. It is exacerbating health challenges, including the rise of vector-borne diseases, food insecurity, and mental health issues. More than 14 million additional deaths and $12.5 trillion in economic losses could occur by 2050 if immediate action isn’t taken, we found in a report done in collaboration with the World Economic Forum. Those findings were shared at the United Nations Climate Change Conference late last year and then with the G20 health working group. They helped shape the G20 Health Ministerial Declaration on Climate Change, Health, and Equity, which emphasized the importance of proactive collaboration between governments and industries.
Parts of the globe already grappling with resource constraints are most at risk of hire morbidity and mortality rates associated with climate change. But several barriers hinder government and industry efforts to address the climate-health nexus. The most daunting hurdles include defining clear market demand, securing adequate funding, and demonstrating a return on investment to attract private sector participation. Chronic underinvestment in areas such as malaria prevention highlights the slow progress caused by these gaps.
To accelerate innovation and scale impact, stakeholders must unlock funding streams, implement supportive policies, and provide incentives for the healthcare and life sciences sectors. Simplifying regulatory processes and fostering collaboration across public, private, and non-governmental sectors are equally vital. Raising public and political awareness about the intertwined impacts of climate change and health is another key step in creating an enabling environment for progress. We explored these topics during a recent webinar conducted with the Global Impact Investing Network. Experts from the public and private sectors, including WEF, International Finance Corporation, Oliver Wyman, Sanofi, and Quadria Capital dissected strategies for building resilient health systems, fostering cross-sector collaboration, and unlocking private sector investment.
Tapping into new financing tools to scale innovation
Data-driven approaches supported by such technologies as artificial intelligence (AI) can bolster the response to climate and health challenges. Predictive modeling and real-world evidence now allow stakeholders to anticipate risks with greater precision, prioritize investments, and optimize healthcare responses.
For instance, AI-driven diagnostics can detect respiratory illnesses caused by poor air quality or vector-borne diseases like malaria and dengue fever early, enabling preventative measures. By shifting healthcare systems from being reactive to proactive, AI and data-driven approaches are building resilience and driving innovation in global health systems.
Funding models like blended financing are essential to unlocking capital and enabling scalable solutions. These models de-risk investments by combining public funds, grants, and private capital, making high-impact areas more attractive to investors. Investments in AI, health technology, and climate-resilient infrastructure are not only driving operational efficiency but also preparing healthcare systems to adapt to future climate challenges.
Venture capital and private equity funds are increasingly directing resources towards solutions like water and sanitation resilience, smart agriculture systems, and telemedicine, which extend healthcare access to underserved populations. Public-private partnerships play a pivotal role in bridging funding gaps and fostering innovation to accelerate targeted outcomes.
Decarbonizing healthcare and advancing breakthroughs
The healthcare sector accounts for approximately 4.5% of global greenhouse gas emissions, underscoring the need for sustainable practices. Transitioning to decarbonized healthcare systems is imperative. Key areas for investment include retrofitting facilities for energy efficiency, localizing pharmaceutical manufacturing, and building climate-resilient infrastructure.
Targeted investments are also advancing breakthroughs in drug development, diagnostics, and telemedicine — efforts that simultaneously reduce emissions and strengthen healthcare systems’ resilience to withstand climate-related disruptions. These initiatives highlight the dual opportunity to address environmental and health challenges while generating measurable returns for investors.
Shaping the future of climate and health
The interconnected challenges of health and climate demand unified cross-sector action. By integrating environmental considerations into health strategies and leveraging cutting-edge technologies, stakeholders can address the impact climate change has on human health while fostering a sustainable, healthier future.
Oliver Wyman and WEF will release a new report at the World Economic Forum Annual Meeting in late January, offering a blueprint for investment and innovation in the climate-health nexus. This research provides actionable strategies to foster resilient global health systems and unlock life sciences innovation. The report aims to usher in a new era of climate resilience in healthcare — one that prioritizes proactive strategies and innovation to secure a sustainable future for both the planet and its people.