France drought and heatwave costs estimated at up to 15 billion euros

The 2026 drought and heatwave in France are projected to incur significant economic costs. Ecological Transition Minister Monique Barbut estimated the total impact could reach between 10 and 15 billion euros, combining direct and indirect costs. While the ministry initially attributed this figure to Insee, the institute denied being the source; the ministry later clarified the amount was an internal extrapolation lacking formal macroeconomic expertise.

For comparison, the 2022 drought cost approximately 5.6 billion euros, including 3.5 billion euros in damages from soil movement affecting building foundations and 1.1 billion euros in agricultural losses. However, the 2022 figure did not account for certain socio-economic impacts such as health, tourism, and productivity.

In the Morbihan region, the FDSEA agricultural union is calling for urgent price increases for producers to offset the crisis. The union reports that heatwaves are causing livestock mortality, threatening forage stocks, and reducing crop yields. They are requesting state support for farm cash flow and the creation of water reserves to mitigate future climate-driven events.