Building the connection: Extreme heat, health, and productivity
A personal reflection, living with the heat in Mérida
When I lived in Mérida, a city where summer temperatures often soar to 45°C, I witnessed firsthand how extreme heat affects daily life. Mérida, with its growing population and bustling construction sector, faces immense challenges during peak heatwaves. I was often shocked to hear about the increasing number of hospitalizations due to heat strokes. Even for those of us lucky enough to work indoors with air conditioning, the rising demand on the electric grid during the summer would often cause blackouts. In my neighborhood, losing power wasn’t just an inconvenience—it sometimes meant someone had to be rushed to the hospital. Heat is not a distant threat; it is something close to all of us. Mérida’s experience is a microcosm of a global crisis. The World Health Organization reports that the number of people exposed to extreme heat is growing exponentially due to climate change in all world regions, formally documented, between the years 2000 2019, approximately 489 000 heat-related deaths occured each year.
A health and productivity imperative
The year 2024 has officially become the hottest on record since 1880, with an unprecedented 15-month heat streak. The economic toll is staggering, with losses due to extreme heat projected to negatively impact up to 6.7% of GDP in low-income regions. Yet, despite the alarming trend, investment in heat resilience remains critically low—less than 7% of global climate finance is directed toward adaptation.
In Mérida and similar cities, the impacts of extreme heat extend beyond rising temperatures. In industries like construction and agriculture, productivity drops by as much as 50% when temperatures exceed 40°C. The financial burden is carried by workers and businesses alike, creating a ripple effect on livelihoods and economic stability. Heat-related mortality rates are disproportionately higher in regions like West Africa, where cities such as Lagos, Niamey, Kano, and Dakar are increasingly exposed. According to the World Meteorological Organization (WMO), West Africa is warming faster than the global average, leading to intensifying extreme heat events exacerbated by poor early warning systems, financial vulnerabilities, and lack of community preparedness.
The economic ramifications of extreme heat are profound. The International Labour Organization (and others) estimates that by 2030, heat stress will result in global productivity losses equivalent to 80 million full-time jobs, primarily affecting agriculture and construction sectors.
The gendered impact of extreme heat
Extreme heat disproportionately affects women, particularly those working in agriculture and the informal sector—areas most exposed to harsh outdoor conditions. Physiologically, women are more vulnerable to heat stress, especially during pregnancy. The burden of caregiving responsibilities further heightens their economic vulnerability, as climate crises often force them to prioritize household needs over income-generating activities.
The Elevating the Voices of the Affected People Co-Lab’s White Paper of the CIFAR Alliance, highlights that extreme heat causes women to lose up to 19% of their paid working hours, with additional unpaid domestic work extending their workdays by up to 90 minutes. Social norms, such as restrictive clothing expectations and limited mobility, further intensify these challenges. Meanwhile, insights from CIFAR’s Climate Risk and Gender-Sensitive Strategies report reveal that despite growing awareness among institutions about the disproportionate effects of climate risks on women, gender-sensitive strategies remain limited.
Innovative solutions for heat resilience
While the challenge is daunting, solutions exist. Countries like Japan, Dubai, and South Korea have successfully implemented strategies to mitigate the impacts of extreme heat, offering valuable lessons for other regions. In Dubai, industrial centers are increasingly adopting thermal sensors to monitor worker conditions and adjust schedules dynamically. Trials, such as those conducted by Emirates Global Aluminium, suggest that these technologies contribute to preventing heat-related illnesses. Japan has developed heat-reflective construction materials that significantly lower indoor temperatures, decreasing reliance on energy-intensive cooling systems. Meanwhile, in South Korea, delivery workers use cooling vests that help maintain body temperature and prevent heat-related illnesses. These strategies demonstrate that adaptation is achievable and provide actionable insights for regions worldwide.
These solutions are not futuristic—they are tangible, proven strategies that can be adapted and scaled globally, including in Latin America and Africa. Through our TECA (Triggering Exponential Climate Action) Venture Launcher Program, BFA Global has supported entrepreneurs in developing climate-smart solutions tailored to local needs. TECA fosters locally led innovation ecosystems that bridge the gap between technology, finance, and adaptation strategies. Adaptation to increasing temperatures is no exception.
Financial protection against extreme heat
Heat resilience is not just about infrastructure, it’s also about financial security. In India, a groundbreaking pilot with the Atlantic Council Resilience Center introduced emergency loans that activate when temperatures exceed a certain threshold. This initiative provided financial relief to informal workers, allowing them to manage income losses during heatwaves. Similar models can be replicated in Mexico, West Africa, and beyond. Women’s World Banking has also raised awareness on how emergency loan schemes could provide women with rapid financial support during extreme weather events. These emergency loans are essential—they sustain livelihoods, reduce income instability, and promote faster recovery from climate shocks. Other financial innovations are also making a difference. Parametric heat insurance, for instance, automatically disburses payments when temperatures surpass critical levels, ensuring that workers can sustain their livelihoods even when work stops. Climate-adaptive credit lines are helping businesses finance cooling infrastructure, shaded workspaces, and hydration stations, simple but effective measures that protect workers and keep operations running. Heat resilience savings accounts enable workers to set aside funds for medical expenses related to heat stress and dehydration.
As global temperatures continue to rise, urban planning must also evolve. Cities in Europe have shown that adaptation is possible by incorporating heat-resilient infrastructure. Green corridors and rooftop gardens naturally cool urban environments. Shaded public spaces and cooling centers provide essential respite during heatwaves. Hydration stations and solar-powered fans at construction sites and markets protect outdoor workers.
Building networks and incentivizing local solutions
Adaptation is possible. The solutions are there. We need to invest in networks that bring these solutions closer to everyone. Innovation must be incentivized to create more local, on-the-ground solutions everywhere in the world. By fostering collaboration between entrepreneurs, policymakers, and funders, we can ensure that adaptation strategies are inclusive and locally relevant.
At BFA Global, we have supported over 100 founders developing climate resilience solutions, mobilized $250K+ in early-stage funding for heat adaptation ventures, and impacted over 2,300 low-income customers through climate-smart innovations. But more needs to be done.
A call to action – Why this matters to me
Emerging economies have the talent and ingenuity to develop homegrown solutions. By building coalitions between entrepreneurs, investors, and policymakers, we can create a future where extreme heat does not cripple economies or endanger lives. Heat resilience requires a multifaceted approach combining technological innovation, financial protection, urban adaptation, and collaboration. We have the knowledge, resources, and expertise to turn this crisis into an opportunity—but this will require bold action from governments, businesses, and the investment community.
Extreme heat requires not just localized interventions but scalable solutions that can protect millions. In an upcoming piece, we will explore what it takes to move from isolated efforts to systemic change—how policy reforms, financial mechanisms, and technological innovations can work together to create lasting resilience. We will also examine the institutional shifts and research needed to close critical knowledge gaps and drive smarter investments in adaptation. The challenge ahead is vast, but so are the opportunities to build a world where extreme heat no longer threatens lives and livelihoods at the scale it does today
As I reflect on my time in Mérida, I think of many affected by extreme heat: neighbors struggling during blackouts, construction and maintenance workers under the relentless sun, and families adapting to a new climate reality. The urgency to invest in solutions, foster innovation, and build resilient networks has never been clearer.
