We recently compiled a list of the 15 Countries at Risk of Climate Disaster and in this article, we will look at the country at the highest risk of climate disaster.
Global Losses due to Climate Disasters
According to the World Meteorological Organization, 79% of disasters around the world from 1970 to 2021 were due to weather, water, and climate-related hazards. These disasters contributed to 56% of total deaths and the majority of economic losses during that period. Over 12,000 disasters took place due to extreme weather from 1970 to 2021, resulting in an economic loss of $4.3 trillion. The total death toll reached 2 million, with developing countries representing 90% of it. The top ten disasters that led to substantial human and economic losses were dominated by droughts, which caused 650,000 deaths, followed by storms with over 577,000 deaths, floods, and then extreme temperatures. Three of these disasters occurred in 2017, including Hurricanes Harvey, Maria, and Irma. These hurricanes alone contributed to 35% of the total economic losses of the top 10 disasters around the world.
Climate disasters have greatly affected lives and the economy globally, with Asia bearing the most of the human cost with nearly half of the global deaths due to disasters, translating to almost 1 million deaths. The most frequent events in the region were floods and storms. Storms contributed to more than 72% of the fatalities in Asia. The economic burden of these disasters was significant with floods causing $1.2 trillion of loss. On the other hand, Africa witnessed the most frequent disasters, however, its death toll was lower than in Asia. Droughts were the deadliest threat in the region causing more than 650,000 deaths. The Americas witnessed the highest economic loss of $1.7 trillion over 50 years. Storms and floods were the dominant climate events in the region. The US accounted for 38% of the global economic burden due to climate disasters. Europe suffered due to extreme temperature events from 2003 to 2010, with 148,000 lives lost.
According to the National Centers for Environmental Information, June recorded the hottest temperature on record. This marks the thirteenth consecutive month of record-breaking global temperatures. Moreover, there was a concerning surge in extreme weather events, highlighting the consequences of climate change, including Hurricane Beryl, which was a category 4 storm, monsoon flooding in Bangladesh, and over 2,500 wildfires in the largest tropical wetland, Pantanal. These disasters caused significant damage and displaced millions. This June served as a stark reminder that climate change is an urgent crisis and can lead to more such climate events.
You can also check 20 Countries with the Most Carbon Dioxide Emissions Per Capita and 15 Countries with the Most Climate Refugees in the World.
Energy Emissions
In 2023, the global energy emissions reached 37.4 gigatonnes, up 1.1% from 2022. Emissions from coal contributed to over 65% of emissions increase in 2023. Energy production contributes 72% to global emissions. The EIA estimates that global energy investments are set to increase by over $3 trillion for the first time ever in 2024, with $2 trillion dedicated to renewable energy technologies and infrastructure. A rise in renewable energy investments can help curb the consequences of climate change while promoting the adoption of cleaner technologies benefitting both the environment and the companies operating in the renewable energy industry. Solar energy is one of the top clean energy technologies, which along with wind helped cut down 465 million tonnes of carbon emissions in 2022. The IEA forecasts that solar PV and wind will account for 95% of global renewable energy growth from 2023 to 2028.
First Solar (NASDAQ:FSLR) is a leader in the solar industry, that designs, manufactures, and sells solar PV modules. It provides low-carbon photovoltaic modules that utilize a thin layer of cadmium telluride (CdTe) to convert sunlight into electricity. It is a dominant player in the United States and pledges to reach a manufacturing capacity of 10 GW by 2025. The company has invested a staggering $2.8 billion in three factories in Ohio, reinforcing its foothold in its domestic market and potential for global expansion.
Beyond the US, First Solar (NASDAQ:FSLR) is continuously expanding its manufacturing footprint globally, particularly in Asia, aiming to reach a capacity of 20 gigawatts by 2025. Its manufacturing footprint extends to Malaysia, India, and Vietnam. In early 2024, the solar market leader inaugurated the $700 million solar manufacturing facility in Tamil Nadu, India. This plant is India’s first fully vertically integrated solar manufacturing facility with an annual capacity of 3.3 gigawatts.
First Solar (NASDAQ:FSLR) stands at the forefront of solar technology as it continues to invest in R&D to drive innovation. It recently announced that its series 6 modules achieved up to 18.3% efficiency with a power output of 460 watts and the series 7 modules achieved a 19.3% efficiency. Efficiency here refers to the ability of a solar panel to convert sunlight into power. For comparison, CdTe solar modules in the market have an average efficiency of 9-15%, while First Solar’s (NASDAQ:FSLR) modules have an efficiency of up to 19.3%. This higher-than-average efficiency increases the lifetime of the modules, translating into a lower levelized cost of electricity (LCOE). First Solar (NASDAQ:FSLR) forecasts its thin-film CdTe efficiency to reach 25% by 2025. In addition, the company’s forthcoming CuRe solar technology, which offers a reduced module degradation rate (decrease in performance over time), recently got certified and is expected to be launched by the end of 2024. Not only do these innovations provide the company with a competitive edge but are also expected to drive future growth.
First Solar (NASDAQ:FSLR) has demonstrated exceptional financial performance. The company generated a revenue of $749.11 million in Q1 2024, up 44.8% year over year. The company also boasts a robust backlog with 2.7 gigawatts of bookings year-to-date. Its massive backlog of 78.3 gigawatts of orders extends to 2030, supporting the foundation for sustained long-term growth of the company. Some of the businesses that placed orders for its modules included Lightsource bp, EDP Renewables, Capital Power, Energix Renewables, the Tennessee Valley Authority (TVA), Matrix Renewables, Longroad Energy, and Swift Current Energy. First Solar’s (NASDAQ:FSLR) ability to meet the growing demand is exemplified by the record 3.6 gigawatts of modules it produced in the first quarter.
The investment landscape for First Solar (NASDAQ:FSLR) also appears promising due to its strong market position and expansion plans coupled with technological innovation. Additionally, supportive government policies like the tariffs imposed on imported panels will substantially benefit solar companies in the US. This will be further supported by the burgeoning demand for renewable energy by data centers. While challenges like growing market competition and supply chain disruptions persist, First Solar’s (NASDAQ:FSLR) strong market presence and solid fundamentals make it a compelling investment opportunity. At the close of Q1, 51 hedge fund managers held stakes worth $1.17 billion in FSLR. Over the past 6 months, the stock has surged nearly 45% and analysts’ 1-year median price target points to a further 38% upside from current levels.
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Methodology
To compile our list of countries at risk of climate disaster, we consulted Notre Dame’s ND-GAIN Index, which assesses countries based on their vulnerability and readiness. We used the vulnerability scores to rank the countries at risk of climate disaster, as they measure a country’s exposure, sensitivity, and adaptation ability to climate change catastrophes. It considers vulnerability across several life-supporting sectors including water, food, health, ecosystem service, human habitat, and infrastructure. We have ranked the countries at risk of climate disaster in ascending order of their vulnerability scores.
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The Country at the Highest Risk of Climate Disaster
1. Somalia
Vulnerability Score: 0.678
Somalia is ranked 1st on our list of countries at risk of climate disasters. The country is vulnerable to climate-induced events such as extreme periods of droughts and flooding, famine, and cyclones. From 2021 to 2023, the country faced its worst drought ever in the past four decades, causing a food crisis for nearly half of its population. The country is the most vulnerable to climate change and its consequences, requiring great urgency to mitigate its impacts.
Curious to learn about other countries at risk of climate disaster? Check out our report on the 15 Countries at Risk of Climate Disaster.
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