Climate-related economic losses

European Environment Agency (EEA) data show that Cyprus is far behind the average regarding insurance coverage for damage caused by climate change, with only 2% of damage receiving compensation. The total value of damage for 1980–2023 is estimated at EUR 441 million. These losses include damage to infrastructure, agricultural setbacks and increased costs of disaster response activities such as fighting forest fires. For smaller countries like Cyprus, such losses are disproportionately impactful due to a heavy reliance on climate-sensitive sectors such as tourism . The rising sea levels are projected to cause annual economic losses of up to 0.4% of gross domestic product by 2050. Strategic adaptation measures, such as coastal protection and infrastructure planning, could reduce these losses by up to 90%. The national adaptation strategy and the national risk assessment highlight the importance of strategies to mitigate the negative impacts of climate change. These strategies involve measures such as managing water resources, boosting agricultural resilience and strengthening early warning systems.