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July 8, 2025 4:12 PM IST

climate action | droughts | ecosystems | economies | European Environment Agency | Europe | climate change | food security | energy security | wildfires | heatwaves

Heatwaves, droughts and wildfires costing Europe billions each year

Extreme heat and worsening drought situations are gripping large parts of Europe, sparking wildfires, triggering red alerts and intensifying global calls for effective climate actions. Driven by climate change, scientists warn, these conditions signal a new era of drought, threatening food security, energy security, ecosystems and economies.

The worrying part is that heatwaves and wildfires are constantly growing deadlier and costlier. If the European Environment Agency (EEA) is to be believed, heatwaves and wildfires are costing Europe billions of euros every year. Estimatedly, in 2023 alone, such climate-related disasters cost around 45 billion euros to 38 European countries, including EU, other European Economic Area (EEA) members, and cooperating countries.

If we take into account the total economic losses from weather and climate related calamities, they exceeded 790 billion euros across the European Economic Area, comprising 32 EEA member states and six Western Balkan countries between 1980 and 2023.

In recent years, Europe has faced an alarming rise in climate-driven calamities like extreme weather conditions, particularly heatwaves and wildfires. These disasters are endangering lives and ecosystems, while at the same time imposing severe economic burdens on governments, local communities and industries. Germany, Italy, France and Spain faced the highest economic losses, however, as per the environmental agency, little of this damage was insured.

According to the European Environment Agency, the leading causes of the damage are floods, storms, wind and hail, while heatwaves cause the most deaths in majority of the countries. As far as economic losses are concerned, they may vary from year to year and country to country, but trends suggest there is a sharp rise in economic damage, which may go beyond 50 billion euros annually.

There is little doubt that people across the world are struggling with sweltering hot temperatures fuelled by climate change, but the way the sweltering summer is gripping southern Europe, parts of the US and the UK is unprecedented.

The scourge of the rising temperature can be understood from the fact that southern Spain experienced 46 degrees Celsius temperature a few days earlier, which is a new record for the month of June. According to the national weather agency, Barcelona has set a new record for its hottest month in June this year, forcing the authorities to urge people to seek shelter from this excruciating heat condition.

A number of countries including France and Italy, have stationed their ambulances near tourist hotspots to treat people if they suffer from heatstroke. Among the vulnerable are people over 65 years of age, pregnant women, children and those with chronic health conditions.

In June, fires caused by the heat and strong winds struck France, Turkey, Greece, Italy and a few other countries, making situations worse than even expected. Germany, the largest economy of Europe and the third largest globally, is also facing a similar situation, as the temperature this year is hovering around 40 degrees Celsius. The town of Andernach in western Germany recorded 39.3 degrees Celsius, marking the highest temperature so far this year, according to the German Weather Service (DWD). Germany’s all-time heat record is 41.2 degrees Celsius, recorded on July 25, 2019.

The worsening heat situations have forced quite a few countries to issue heat alerts. Sixteen regions in France including Paris and other parts of southern and eastern Europe have heat alerts in place. The soaring temperatures forced its Climate Minister, Agnes Pannier-Runacher to call the situation an unprecedented one. Heat alerts are also in place in several parts of Spain, Portugal, Italy, Britain and Balkan countries like Croatia. Several countries have recorded their hottest June this year.

Besides emergency services being put in place in several countries and warnings being issued for people to stay inside as much as possible, around 200 schools across France are either closed or partially closed as a result of the heatwave conditions.

Heatwaves are impacting many parts of Central Asia, the Middle East, North Africa, North America and a few others also, but the way Europe is facing heat conditions calls for urgent measures, as the region is not known for such heatwave conditions.

Studies suggest more than two-thirds of the heatwave conditions have hit Europe since 2000 and the conditions are gradually worsening. The Intergovernmental Panel on Climate Change Sixth Assessment Report shows that by 2050, around half of the people in Europe may be exposed to heatwave conditions during summer.

It is also undeniably true that the effects of heatwave conditions are more pronounced in cities, as urban environments are significantly warmer than rural areas due to a large number of paved surfaces, huge multi-story buildings, large number of all kinds of vehicles and several other heat-generating sources.

A new UN report says droughts have risen 30% since 2000, now affecting all sectors from agriculture and energy to healthcare and infrastructure. Owing to very high temperatures, the economic distress of people is growing fast.

Just as COVID-19 strained the insurance sector, rising temperatures are now compounding the pressure, with insurers reassessing the risks and costs of covering properties in high-risk zones across Europe.

Public infrastructure is also not immune to the stress being thrown upon by rising temperatures. Roads, railways, power grids and hospitals also suffer heatwave-related wear and tear. Wildfires destroy homes, farmlands and forests, which require billions for reconstruction and recovery.

The economic toll can be gauged from the fact that some countries are already losing up to 10% of GDP annually, as suggested by some environmental and economic reports. The OECD warns drought-related costs could double again by 2035.

Hence, environmentalists and those who understand these damaging trends urge urgent global investment in early warning systems, drought monitoring, nature-based solutions and climate-resilient infrastructure. Without strong action and better implementation of national plans, droughts could spiral into global economic and humanitarian shocks.

Clearly, the need for urgent and coordinated action has never been more critical, as heatwaves intensify across Europe and the globe, driven by accelerating climate change. Mitigating these impacts requires multi-fold efforts, including reducing greenhouse gas emissions to slow global warming and investing heavily in adaptation measures to protect people, economies and ecosystems from escalating heat extremes.

For Europe, this means upgrading infrastructure to withstand extreme heat, expanding green urban spaces to reduce the urban heat island effect and strengthening public health systems to respond to heat-related health conditions. Since the majority of the countries in Europe are not prepared to face such heatwave conditions, they need to improve early warning systems, ensure access to cooling centers for vulnerable populations and integrate climate resilience into housing and city planning.

On global scale, cooperation and coordination among countries are essential, as climate change-related calamities are not going to be restricted to a few regions. Hence, sharing technology, funding nature-based solutions like reforestation and watershed restoration and supporting climate-vulnerable regions are key to having a holistic solution. The world also requires a proactive and science-driven approach along with an equity-based climate strategy before the human and economic cost becomes unmanageable for us.

 

Last updated on: 9th Jul 2025