Italy faces €6‑12 billion yearly cost from extreme heat

A study by the business association Confesercenti estimates that 30‑60 days of extreme heat each year could cost the Italian economy between €6 billion and €12 billion, representing roughly 0.2‑0.4% of GDP. The bulk of the expense comes from mandatory investments in more efficient cooling systems and building retrofits (€2‑4 billion annually) and higher energy consumption for air‑conditioning (€2‑3 billion). A further loss of productivity, estimated at €1.5‑3 billion, arises as labor output drops and sickness‑related absences rise during very hot days.

The impact spans several sectors. Construction, agriculture, logistics, street‑level retail and outdoor tourism are especially vulnerable. Consumer habits shift: demand for winter apparel declines, outdoor dining loses appeal, and tourist flows move toward shoulder months of June and September, hurting city‑center commerce. Households also bear higher bills, with average cooling expenses rising from about €150 to potentially €400 per year.

Confesercenti president Nico Gronchi described the phenomenon as a “real climate tax,” urging structural interventions beyond individual family and business adjustments.