EU climate adaptation spending must double to protect GDP

European Union climate commissioner Wopke Hoekstra has stated that EU governments must more than double their current spending on climate adaptation to prevent increasingly catastrophic economic consequences. Recent heatwaves, droughts, and wildfires have already caused significant damage, with some economists suggesting these losses could offset the EU's projected GDP growth for 2026.

The European Commission estimates that climate-related disasters are already reducing the bloc's GDP by 1%. This figure is projected to rise to 2.3% by 2050 and reach 7% by the end of the century. Insurers have also warned that cumulative GDP losses in the most exposed EU countries could reach 7% between now and 2030.

Hoekstra emphasized that adaptation spending is an “imperative necessity” rather than a luxury, noting that failure to invest now will result in much higher costs later. The Commission previously indicated that the EU requires approximately 70 billion euros annually for adaptation measures, such as flood prevention and urban cooling.