2025 was the costliest wildfire year in history—despite burning less land than usual

Date:

Share post:



The global 2025 wildfire season can be summed up with one of two extreme datapoints. It can be strange to think of the good news of wildfires, but for the optimists, last year’s blazes set aflame the second smallest number of square miles since 2002, behind only 2018, when around 330 million hectares burned. For the realists in the rooms—perhaps joined by economists and accountants—2025’s wildfire season was anything but good news.

Last year’s fires took the costliest financial toll in recorded wildfire history, accounting for 38% of all insured losses related to natural hazards, according to a study published Sunday in the journal Nature Reviews Earth & Environment. That’s despite the fact the area burned by fires around the world was 16% below the long-term average of around 400 million hectares.

While low by recent standards, wildfires still burned around 335 million hectares of land last year, or 1.3 million square miles—about twice the size of Alaska. Fires also caused 90 fatalities globally, and forced around 300,000 evacuations, according to the study.

In some parts of the world,  wildfires, or lack thereof, was an unmitigated success story. In Africa, for instance, the rate of wildfire occurrence has declined dramatically in recent decades, as expanding agricultural activity encroached across natural savannahs and fragmented wild landscapes into plots of land less prone to burning. Similar trends have played out in Central Asian steppes and South American plains.

But in other parts of the world, fires are springing up with less warning and more ferocity—in many cases, directly threatening areas densely populated by humans. This has raised the risk of fires incurring heavy financial costs, and that of flare-ups engulfing people’s livelihoods.

“2025 shows that a ‘quiet’ fire year globally can still be devastating. We are seeing a growing disconnect between total area burned and real-world impacts, with risk increasingly determined by fire location, intensity, and exposure,” Matthew Jones, a physical geographer at the U.K.’s University of East Anglia and lead author of the study, said in a statement.

Fewer, but more ‘devastating’ blazes

That the world suffered fewer acres torched by wildfires in 2025 likely comes as little relief to the countries and cities that battled the infernos last year. 

Fires are migrating to higher latitudes as climate change prolongs heatwaves and drought conditions in more parts of the world. Higher temperatures combined with dense volumes of dry and flammable vegetation has raised the risk of even the smallest conflagrations quickly bellowing into unstoppable mega-fires. In the western U.S., climate change has been linked to a doubling in the number of large fires and extent of burned area over the past 40 years, according to a 2016 study published in the journal PNAS.

That means wildfires can rapidly escalate into generational events. The Palisades and Eaton fires that ripped through Los Angeles last year came in as one of the most destructive fire catastrophes in California’s history, forcing around 200,000 evacuations, razing down more than 18,000 structures, and causing up to 440 direct and indirect deaths, when factoring in health complications related to smoke inhalation.

The LA fires also came in as the fifth most costly natural disaster in history for insured losses, according to the most recent study. Total losses from the fires were worth $140 billion, of which $40 billion were insured.

Large fires in South Korea—where a record-smashing wildfire outbreak last spring charred around 250,000 acres—and in Europe–where fires collectively torched some 2.5 million acres—also caused dozens of deaths and forced mass evacuations. In Canada, last year ended as the second worst fire year in the country’s history, as a total of 6,000 fires torched around 22 million acres.

Fires are quickly emerging as one of the global economy’s biggest recurring pain points. Between 2014 and 2023, blazes caused around $106 billion in economic losses globally, including $74 billion in insured losses, according to a UN report on disaster risk published last year. Over the decade prior, insured losses from wildfires were under $10 billion.

The bulk of those financial costs are being absorbed by the U.S., home to nine of the 10 most expensive wildfire events since 1970, according to the UN report, calculated before California’s January 2025 wildfires could be accounted for. Other parts of the world, including several African countries, might be dealing with smaller total costs due to wildfires, but larger shares of uninsured losses that deal a heavier toll on local livelihoods.

“2025 illustrated the complex and uneven nature of climate-change impacts on wildfires. Although the year’s most damaging events did not always coincide with exceptional total area burned, they produced acute societally disastrous outcomes,” the recent study’s authors wrote. 

“Wildfires in 2025 continue to demonstrate that devastating consequences are not governed by area burned alone.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Lettuce Financial: Get $500 Cash Back Through Rakuten

  Lettuce Financial: Get $500 Bonus Through Rakuten Rakuten is offering $500 cash back for new customers who sign...

Jobless rate rises to 6.7% amid small employment decline

Canada's unemployment rate edged up to 6.7% in October as more people looked for work and employment...

The Promise—and Peril—of an AI-Assisted Board

<p>HBS professor Suraj Srinivasan on ways in which AI can help bridge the relationship between the board...

Raga Finance:4點光線財經 / 瑞銀集團特約 – 買粒「棠」贏間廠 20261020 – 主持:冼潤棠(棠哥)、羅尚沛(Eugene); 嘉賓:蔡秀虹 Eva

嘉賓:蔡秀虹 Eva (法興證券上市產品銷售部董事) -------------------------------------------------------------------------- 美國頂尖券商 納斯達克上市 全港首家 美港股交易 真0佣金0平台費 Webull新開戶入資回贈高達HK$100,000獎賞 專屬開戶Link:  獎賞一:開戶入金/轉倉獎賞(四選一) 1)新開戶30天内入金/轉倉HK$10,000-HK$79,999,由第31天開始資金維持連續30天,可獲價值HK$800現金券; 2)新開戶30天内入金/轉倉HK$80,000-HK$199,999,由第31天開始資金維持連續30天,可獲價值HK$2,000現金券; 3)新開戶30天内入金/轉倉HK$200,000-HK$499,999,由第31天開始資金維持連續360天,可獲價值HK$3,000現金券。此獎賞總共分十二期發放,每30日可獲1期獎賞, 每期發1張價值HK$250現金券; 4)新開戶30天内入金/轉倉HK$500,000或以上,由第31天開始維持連續360天,並按累計净入資產x1%計算現金券獎賞金額,最高可達HK$100,000 。此獎賞總共分十二期發放,每30日可獲1期獎賞,每期發3張面值等額的現金券。 獎賞二:交易費用全免 開市大吉 美港股交易:真0佣金0平台費,無隱藏收費,開倉平倉輕鬆自如 美股期權:活動期收費低至0* 獎賞三:孖展低息 槓上開花 美元孖展年利率4.75%; 港元孖展年利率5.7%,讓你低成本資金周轉,靈活布局新一年投資大計 獎賞四:免費實時行情 洞燭先機 免費實時行情,包括免費美股Lv2深度行情及免費港股Lv1串流報價,掌握市場脈動,快人一步 獎賞五:高達HK$2,500轉倉禮 助你轉倉無憂 轉倉享高達 HK$2,500 手續費報銷,幫你慳返一大筆轉倉成本! ​限時優惠至10月31日,立即開戶拎大獎! Webull同你一齊告別高昂收費,揀啱平台先可以真正節省股票交易成本! 投資美股 揀Webull 全港唯一真0佣金0平台費 不設期限 無隱藏收費 全球5,500萬下載量* 現金券説明: 滿足活動指定的條件後 ,現金券獎賞將解鎖,在解鎖後自動發放,現金券在發放後360天内兌換有效;使用條件:選擇1筆現金券領取後下單买入並成交的交易額大於等於HK$1(或等值貨幣)的交易訂單進行兌換;券兌換後的返現將於 14 個交易日內返還至對應交易帳戶;現金券可交易股票、期權、基金等品類,具體適用標的和有效期限制,請以【獎勵中心–現金券】的詳情描述爲準。 免責聲明: 活動及優惠受條款及細則約束。「全港首家」乃根據對香港25家主流互聯網劵商或上市券商的公開價格資料的專項研究所得(截至2026年3月16日)。Webull 為首家將美股及港股交易之「0佣金」及「0平台費」定為標準收費,不設優惠期限或優惠條件。本內容並非投資意見,不構成任何投資產品之要約、招攬、意見或任何保證,亦不構成任何投資建議。投資涉及風險,投資產品價格可升可跌(包括可能會損失投資本金) ,過去表現並不代表將來表現。在作出任何投資決定前,投資者應瞭解該投資產品及其風險,謹慎考慮自身的風險承受能力、財務情況、投資經驗及目標或尋求專業投資顧問的建議,作出理性決策。* 0收費是指 Webull...