Extreme weather events cost Europe over €43 bln in losses this summer – report
Clean Energy Wire
Economic losses from drought, floods and heatwaves cost Europe 43 billion euros this summer, according to estimates by researchers at the University of Mannheim and economists from the European Central Bank. Southern European regions – including Spain, Italy, Portugal and Greece – were especially affected by damages from extreme weather events between June and August, they said in a report.
“The actual costs of extreme weather events only become apparent gradually, as these events affect people's lives and livelihoods through a variety of channels that go beyond the immediate impacts,” said report author Sehrish Usman. The team therefore aimed to provide a rapid estimate of how extreme weather events had affected Europe’s economic activity. “By assessing the impacts in a timely manner, policymakers can target their support and adapt strategies while the consequences of extreme events are still unfolding,” Usman added.
Economic losses happen, for example, through reduced productivity in the construction sector during heatwaves, agricultural losses resulting from drought, and infrastructure damage or supply chain interruptions as a result of floods. The authors said that their calculations are rather conservative, as other extreme weather events such as hailstorms and wildfires were not accounted for.
“The study makes it clear that extreme weather events are no longer a distant threat – they are already influencing economic development in Europe today,” the team wrote in a press release. Macroeconomic losses could amount to 126 billion euros by 2029 compared to a scenario without floods, droughts and heatwaves, the researchers warned and called for increased investments in climate adaptation measures.
Recurring extreme weather events have raised awareness across Europe in recent years that climate change could quickly impact quality of life, infrastructure and whole economies, and that adaptation measures, alongside emissions reduction, are necessary to adequately respond to global warming.
