It will reduce the potential for economic growth in developing economies through both incremental changes in climate and the rise in impacts from extreme events. A wide range of studies has identified links between decreases in growth or welfare and climate change impacts.7 These have considered the specific connections with increasing average temperatures (Dell et al., Natural disasters and extreme events can give rise to significant economic damage, in addition to the environmental and humanitarian impacts. In addition to the one-off economic impacts, disasters can also reduce longterm economic growth prospects by diverting expenditure towards emergency relief and reconstruction at the expense of investments in growth and poverty reduction (Benson and Clay, 2004), or by reducing the quantity of productive capital in the economy (Vivid Economics, 2010).