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Economic policymaking needs to adapt to the climate emergency | Heather Stewart

The GuardianSunday, June 22, 2025 at 11:47:53 AM
NegativeFinancial MarketsClimate Economics
Economic policymaking needs to adapt to the climate emergency | Heather Stewart
This piece argues that economic policymakers are struggling to keep up with the realities of climate change, especially as extreme weather events—like the recent UK heatwave—disrupt economies and drive inflation. Companies often hike prices during climate-related "cost shocks," and current policy tools aren’t designed to handle this new normal. The article also highlights how poorer nations, hit hardest by climate disasters, are calling for support from wealthier countries that historically contributed most to the problem.
Editor’s Note: Climate change isn’t just an environmental issue—it’s reshaping economies in ways policymakers aren’t prepared for. If governments don’t adapt their strategies, inflation and inequality could spiral further, leaving vulnerable populations even worse off. This isn’t a distant future problem; it’s happening now, and the article pushes readers to see the urgency behind rethinking economic policy.
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