Climate change economic impacts in Greece

The European Commission’s 2026 Country Report for Greece indicates that extreme weather and climate phenomena resulted in economic losses of 18.3 billion euros between 1980 and 2024. The report notes that only 5% of these losses were insured, placing a heavy financial burden on the state, businesses, and individuals. To mitigate these vulnerabilities, the Commission estimates Greece requires annual adaptation investments of approximately 1.74 billion euros, or 0.7% of its GDP.

In the renewable energy sector, data from the Association of Greek Insurance Companies (EAAE) shows a shift in claim patterns. While the frequency of insurance claims for renewable energy projects decreased by 53.9% in 2025 compared to the previous year—dropping from 924 to 426 claims—the average cost per claim rose by approximately 61%, increasing from €5,423 to €8,755. Experts attribute these rising costs to the intensity of weather phenomena, equipment value, and project scale. This trend persists as Greece’s renewable capacity continues to expand, with operational photovoltaic capacity reaching 13.8 GW as of July, a figure that exceeds 2030 targets.

Additionally, a study by the Center for Liberal Studies (KEFIM) identifies a structural gap in Greek capital investment. While public investment aligns with European levels, Greece’s gross fixed capital formation remains 4.4 percentage points below the EU-27 average, a deficit driven primarily by the private sector in areas such as housing, construction, and intellectual property (R&D).