# Economic impacts of climate change in Europe > Live situation record from CLSTR: https://clstr.news/situations/economic-impacts-of-climate-change-in-europe > Updated: 2026-08-24T17:49:00.000Z. Sources: 2. Developments: 2. Economic leaders and officials in Croatia and the European Union are warning of the escalating financial burdens caused by climate change. In Croatia, the Chamber of Commerce reported that extreme heat, droughts, and fires are creating significant economic costs, suggesting that the nation requires an annual investment of approximately 1.1% of its GDP for decarbonization and adaptation to maintain economic competitiveness. On a broader scale, the European Commission has noted that climate-related disasters are currently reducing EU GDP by 1%, with projections suggesting this could reach 7% by the end of the century. While the EU requires an annual investment of roughly 70 billion euros for adaptation measures like flood prevention, current spending is estimated at only 29 billion euros. In the Czech Republic, officials have highlighted the need for improved water retention and the use of technologies such as artificial intelligence to help the agricultural sector manage increasing weather fluctuations. ## Timeline ### 2026-08-24: EU officials warn of rising costs from climate change impacts EU officials and Czech President Petr Pavel warn that increasing climate volatility necessitates urgent investment in adaptation measures to prevent escalating economic damages and agricultural instability. 2 sources. https://clstr.news/cluster/eu-officials-warn-of-rising-costs-from-climate-change-impacts ### 2026-08-07: Croatia Faces €126 billion Annual Climate Damage, Calls for 1.1% GDP Investment Croatia’s Chamber of Commerce says climate change could cost Europe €126 bn annually and urges a 1.1 % GDP boost for adaptation, warning impacts on agriculture, tourism, construction and energy. 2 sources. https://clstr.news/cluster/croatia-faces-126-billion-annual-climate-damage-calls-for-11-gdp-investment --- Cite as: Economic impacts of climate change in Europe. CLSTR, https://clstr.news/situations/economic-impacts-of-climate-change-in-europe