Negative impactEconomy
Heat stress cost India $9 per tonne of CO2 in lost labour productivity in 2025
Economic Times 1 hr ago·16 Sept 2026, 11:55 am
A new study reveals that heat stress significantly impacted India's economy in 2025, causing a loss of $9 for every tonne of carbon dioxide emitted. This figure is notably lower than the global average of $41 per tonne, highlighting the specific vulnerability of the Indian workforce to rising temperatures. The study attributes this economic hit to reduced labour productivity, particularly affecting outdoor workers who face the most direct exposure to dangerous heat conditions.
This data underscores a growing challenge for the Indian economy as climate change intensifies. For investors, this trend signals potential long-term risks to productivity and operational efficiency across various sectors. It also highlights the urgent need for businesses and policymakers to adapt to extreme weather and invest in climate resilience strategies to safeguard the workforce and maintain economic output.
Excerpt from Economic Times
India experienced significant labour productivity losses due to heat stress in 2025. A study revealed that each tonne of carbon dioxide emitted cost India nine dollars. Globally, emissions caused forty-one dollars in lost labour productivity per tonne. Outdoor workers face the greatest exposure to these dangerous heat…Read the original at Economic Times
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