Climate inaction is getting more and more serious for both Europe's healthcare systems and economies, and will cost the continent up to €5.6bn by 2050, according to a new report.
In a press conference on Tuesday (28 October) economist Sigrid Stagl presented the findings of a study commissioned by Austrian Green MEP Lena Schilling.
The study looked at the impact of climate change on European economies by analysing the effect on Europe’s regions, job development, and productivit-loss caused by health impacts of extreme weather events.
Stagl said $2.2 trillion [€1.89 trillion] is invested in climate action globally every year. But for a successful global green transformation, investment would have to grow by four times. Europe would need to invest roughly three times as much as it already does.
The study shows doing nothing is about six times higher than the required investments for decarbonisation.
“Climate inaction is the most expensive option”, Stagl said. "Economically, socially and morally, action is the only rational strategy. Any delay increases costs, deepens inequalities and diminishes Europe's future profitability.”
The study looked at several sectors impacted by climate change.
In the healthcare sector the study turned to data from the World Health Organization which documented rising mortality and morbidity-connected heatwaves, air pollution and extreme events.
Additionally, they found associated increases in cardiovascular and respiratory disease burdens. Without action, Europe's annual climate-related health costs could exceed €400bn, alongside 30,000–80,000 additional heat-related deaths each year, according to the study.
The record-breaking summer of 2024 alone caused 62,700 deaths in Europe according to a study led by the Barcelona Institute for Global Health.
For a country's economy that will mean reduced productivity, especially in outdoor and heat-exposed jobs, loss in working hours due to heat stress and illness, and higher welfare spending as well as healthcare demands.
Extreme weather events like floods and wildfires are another cost driver in Europe, becoming more frequent and severe due to climate change.
Since 1980, natural disasters have already caused €738bn in damages across Europe. In the last three years alone the number in the EU reached €162bn, showing a trend of increasing loss.
The fiscal risks come from disaster relief, infrastructure repair, health expenditure, and reduced revenues from economic slowdowns.
According to the findings every 10 years of delay makes fighting climate change roughly 25-30 percent more expensive globally. But if EU countries postpone tackling emissions in key sectors like industry until after 2035, it becomes even costlier — increasing economic losses by 40-50 percent.
Every month, hundreds of thousands of people read the journalism and opinion published by EUobserver. With your support, millions of others will as well.
If you're not already, become a supporting member today.
Hannah Kriwak is a junior reporter from Austria at EUobserver, covering European politics.
Hannah Kriwak is a junior reporter from Austria at EUobserver, covering European politics.