Climate-related economic losses

Bulgaria is located in a region particularly vulnerable to climate change. In recent decades, the frequency of extreme weather events (e.g. droughts and flooding) has increased significantly. [1] The most common hydrometeorological events are intense rainfall and extreme temperatures (heat and cold waves), storms, flooding, forest fires, landslides and droughts. Mounting evidence (e.g. the deterioration of water and road infrastructure due to flooding) suggests that economic losses due to climate-related disasters are increasing. Climate change is likely to pose further challenges to national economic growth by 2050, with a cumulative anticipated loss in real gross domestic product (GDP) of between 1% (optimistic scenario) and 3.5% (pessimistic scenario). The national climate change adaptation strategy provides a macroeconomic analysis of the implications of climate change; the sectors identified as the most vulnerable are agriculture, forestry, energy and tourism, but many uncertainties remain about risk and vulnerability estimations, given the complex interlinkages among sectors.

Climate-related economic losses have increased over the last 20 years, and yet insurance coverage is below 50% for all climate-related risks.