Europe’s Economic losses From Climate Disasters Soar to €43 Billion Last Year
Brussels - Extreme weather events driven by climate change inflicted €43 billion in economic losses across europe last year, according to a new study by insurance giant MunichRe. Of that total, €14 billion was covered by insurance. The escalating financial toll underscores the growing vulnerability of European economies to the intensifying impacts of a warming planet, demanding urgent adaptation measures and heightened preparedness.
The analysis, presented Monday in Brussels, details the broad economic consequences of floods, droughts, heat waves, and other climate-related disasters, extending beyond immediate physical damage to encompass disruptions in worker productivity, supply chains, and agricultural yields.While the study focuses on direct economic impacts,it notably excludes the extensive damage caused by wildfires that consumed over 1 million hectares across the continent this year,suggesting the true cost is likely even higher.
Usman, a representative from MunichRe, emphasized the increasing frequency and intensity of thes events. “Climate change has increased the frequency and intensity of extreme weather events like floods, droughts, heat waves, wildfires, and all of this is contributing to the rising economic cost for the European regions,” he stated.
The study assessed damage to both buildings and infrastructure, alongside less visible effects on economic output. Floods, such as, can severely disrupt logistical networks, while prolonged droughts threaten agricultural production. ”These events are not just temporary shocks,” Usman cautioned. “They manifest thier impacts over time.”