Climate change could cost London £15bn annually by 2050, report warns

London could face annual climate-related losses of up to £15 billion by 2050 unless governments take urgent action to strengthen the city’s resilience against rising temperatures and extreme weather, a new report has warned.

The study by Central London Forward (CLF)—a partnership representing the capital’s 12 central boroughs—says increasingly frequent heatwaves, floods and droughts will have significant consequences for London’s economy, public health and infrastructure in the coming decades.

The report urges the Greater London Authority (GLA) to accelerate adaptation measures, including expanding green spaces, upgrading drainage systems and making homes more resilient to extreme heat.

Heat, flooding and the Urban Heat Island effect

The report highlights London’s growing vulnerability to the Urban Heat Island (UHI) effect, where dense concentrations of buildings and roads trap heat, making parts of the city feel up to 10°C warmer than surrounding areas during hot weather.

While expanding parks and other green infrastructure can help cool the city, the report notes that many cash-strapped local authorities struggle to fund such projects, particularly because there is no statutory requirement to provide them.

It also recommends retrofitting social housing to better withstand extreme heat and investing in sustainable drainage solutions, such as permeable paving, to reduce flood risks by allowing rainwater to soak into the ground.

Call for long-term funding

Charlie Rainsford, CLF’s assistant director of policy and external affairs, said London urgently needs a coordinated approach to climate adaptation.

“It is vital that we make central London more climate resilient. However, the responsibility for action currently falls on local authorities, without any sustainable funding or a common framework,” he said.

He called for long-term, devolved funding for climate adaptation projects and for resilience measures to be embedded in planning policy.

City Hall response

Responding to the report, a spokesperson for the Mayor of London said City Hall is working with boroughs, health services, Transport for London, emergency services and community organisations to prepare the capital for the impacts of climate change.

The spokesperson also highlighted the recent launch of Heat Ready London, a long-term strategy aimed at helping the city adapt to rising temperatures, protect vulnerable residents, strengthen critical infrastructure and improve resilience in the decades ahead.