Economic losses from climate-related extremes in Europe

Between 1980 and 2019, climate-related extremes caused economic losses totalling an estimated EUR 446 billion in the EEA member countries. Although analysing trends in economic losses is difficult, partly as a result of high variability from year to year, climate-related extremes are becoming more common and, without mitigating action, could result in even greater losses in the coming years. The EU adaptation strategy aims to build resilience and ensure that Europe is well prepared to manage the risks and adapt to the impacts of climate change, thus minimising economic losses and other harms.

^{Published: 18 Nov 2021 13:16 ‒ 25min read}

Type	Year	Value	Chart
Meteorological events	1980	121	EEA-32
Meteorological events	1981	2254	EEA-32
Meteorological events	1982	2292	EEA-32
Meteorological events	1983	900	EEA-32
Meteorological events	1984	3948	EEA-32
Meteorological events	1985	618	EEA-32
Meteorological events	1986	2571	EEA-32
Meteorological events	1987	3202	EEA-32
Meteorological events	1988	391	EEA-32
Meteorological events	1989	754	EEA-32
Meteorological events	1990	14962	EEA-32
Meteorological events	1991	296	EEA-32
Meteorological events	1992	2236	EEA-32
Meteorological events	1993	2775	EEA-32
Meteorological events	1994	1455	EEA-32
Meteorological events	1995	775	EEA-32
Meteorological events	1996	979	EEA-32
Meteorological events	1997	1723	EEA-32
Meteorological events	1998	1558	EEA-32
Meteorological events	1999	26110	EEA-32
Meteorological events	2000	1422	EEA-32
Meteorological events	2001	2112	EEA-32
Meteorological events	2002	5802	EEA-32
Meteorological events	2003	2369	EEA-32
Meteorological events	2004	3091	EEA-32
Meteorological events	2005	6661	EEA-32
Meteorological events	2006	2531	EEA-32
Meteorological events	2007	9197	EEA-32
Meteorological events	2008	4556	EEA-32
Meteorological events	2009	7389	EEA-32
Meteorological events	2010	6379	EEA-32
Meteorological events	2011	3219	EEA-32
Meteorological events	2012	702	EEA-32
Meteorological events	2013	10535	EEA-32
Meteorological events	2014	5105	EEA-32
Meteorological events	2015	4731	EEA-32
Meteorological events	2016	2679	EEA-32
Meteorological events	2017	5323	EEA-32
Meteorological events	2018	9356	EEA-32
Meteorological events	2019	7684	EEA-32
Hydrological events	1980	104	EEA-32
Hydrological events	1981	357	EEA-32
Hydrological events	1982	4031	EEA-32
Hydrological events	1983	7146	EEA-32
Hydrological events	1984	623	EEA-32
Hydrological events	1985	21	EEA-32
Hydrological events	1986	146	EEA-32
Hydrological events	1987	6742	EEA-32
Hydrological events	1988	1015	EEA-32
Hydrological events	1989	746	EEA-32
Hydrological events	1990	1972	EEA-32
Hydrological events	1991	846	EEA-32
Hydrological events	1992	1672	EEA-32
Hydrological events	1993	4194	EEA-32
Hydrological events	1994	14383	EEA-32
Hydrological events	1995	3951	EEA-32
Hydrological events	1996	1775	EEA-32
Hydrological events	1997	10783	EEA-32
Hydrological events	1998	2635	EEA-32
Hydrological events	1999	3472	EEA-32
Hydrological events	2000	15029	EEA-32
Hydrological events	2001	1580	EEA-32
Hydrological events	2002	25492	EEA-32
Hydrological events	2003	1783	EEA-32
Hydrological events	2004	332	EEA-32
Hydrological events	2005	7453	EEA-32
Hydrological events	2006	1027	EEA-32
Hydrological events	2007	704	EEA-32
Hydrological events	2008	912	EEA-32
Hydrological events	2009	1590	EEA-32
Hydrological events	2010	9536	EEA-32
Hydrological events	2011	3556	EEA-32
Hydrological events	2012	595	EEA-32
Hydrological events	2013	11689	EEA-32
Hydrological events	2014	4560	EEA-32
Hydrological events	2015	2611	EEA-32
Hydrological events	2016	6388	EEA-32
Hydrological events	2017	1494	EEA-32
Hydrological events	2018	869	EEA-32
Hydrological events	2019	5018	EEA-32
Climatological events	1980	3286	EEA-32
Climatological events	1981	19	EEA-32
Climatological events	1982	7220	EEA-32
Climatological events	1983	4332	EEA-32
Climatological events	1984		EEA-32
Climatological events	1985	2320	EEA-32
Climatological events	1986	3110	EEA-32
Climatological events	1987	2365	EEA-32
Climatological events	1988	2654	EEA-32
Climatological events	1989	2950	EEA-32
Climatological events	1990	4296	EEA-32
Climatological events	1991	1100	EEA-32
Climatological events	1992	8365	EEA-32
Climatological events	1993	72	EEA-32
Climatological events	1994	612	EEA-32
Climatological events	1995	1153	EEA-32
Climatological events	1996	466	EEA-32
Climatological events	1997	2176	EEA-32
Climatological events	1998	860	EEA-32
Climatological events	1999	5472	EEA-32
Climatological events	2000	2713	EEA-32
Climatological events	2001	537	EEA-32
Climatological events	2002	1	EEA-32
Climatological events	2003	17709	EEA-32
Climatological events	2004		EEA-32
Climatological events	2005	3670	EEA-32
Climatological events	2006	3156	EEA-32
Climatological events	2007	2558	EEA-32
Climatological events	2008	36	EEA-32
Climatological events	2009	381	EEA-32
Climatological events	2010	1064	EEA-32
Climatological events	2011	508	EEA-32
Climatological events	2012	3909	EEA-32
Climatological events	2013	765	EEA-32
Climatological events	2014	1396	EEA-32
Climatological events	2015	2309	EEA-32
Climatological events	2016	752	EEA-32
Climatological events	2017	6874	EEA-32
Climatological events	2018	4514	EEA-32
Climatological events	2019	601	EEA-32
Meteorological events	1980	115	EU-27
Meteorological events	1981	1792	EU-27
Meteorological events	1982	2218	EU-27
Meteorological events	1983	650	EU-27
Meteorological events	1984	3902	EU-27
Meteorological events	1985	588	EU-27
Meteorological events	1986	1953	EU-27
Meteorological events	1987	2781	EU-27
Meteorological events	1988	351	EU-27
Meteorological events	1989	696	EU-27
Meteorological events	1990	14294	EU-27
Meteorological events	1991	261	EU-27
Meteorological events	1992	1603	EU-27
Meteorological events	1993	2444	EU-27
Meteorological events	1994	1233	EU-27
Meteorological events	1995	700	EU-27
Meteorological events	1996	949	EU-27
Meteorological events	1997	1529	EU-27
Meteorological events	1998	1405	EU-27
Meteorological events	1999	23523	EU-27
Meteorological events	2000	1322	EU-27
Meteorological events	2001	2087	EU-27
Meteorological events	2002	5227	EU-27
Meteorological events	2003	2316	EU-27
Meteorological events	2004	2947	EU-27
Meteorological events	2005	6336	EU-27
Meteorological events	2006	2469	EU-27
Meteorological events	2007	8697	EU-27
Meteorological events	2008	4411	EU-27
Meteorological events	2009	6323	EU-27
Meteorological events	2010	6341	EU-27
Meteorological events	2011	2552	EU-27
Meteorological events	2012	613	EU-27
Meteorological events	2013	10242	EU-27
Meteorological events	2014	5071	EU-27
Meteorological events	2015	4568	EU-27
Meteorological events	2016	2592	EU-27
Meteorological events	2017	4632	EU-27
Meteorological events	2018	8995	EU-27
Meteorological events	2019	7513	EU-27
Hydrological events	1980	76	EU-27
Hydrological events	1981	343	EU-27
Hydrological events	1982	4025	EU-27
Hydrological events	1983	7137	EU-27
Hydrological events	1984	588	EU-27
Hydrological events	1985	21	EU-27
Hydrological events	1986	141	EU-27
Hydrological events	1987	4979	EU-27
Hydrological events	1988	986	EU-27
Hydrological events	1989	746	EU-27
Hydrological events	1990	1746	EU-27
Hydrological events	1991	837	EU-27
Hydrological events	1992	1672	EU-27
Hydrological events	1993	3313	EU-27
Hydrological events	1994	14219	EU-27
Hydrological events	1995	3333	EU-27
Hydrological events	1996	1715	EU-27
Hydrological events	1997	10625	EU-27
Hydrological events	1998	1449	EU-27
Hydrological events	1999	2971	EU-27
Hydrological events	2000	14431	EU-27
Hydrological events	2001	1488	EU-27
Hydrological events	2002	25415	EU-27
Hydrological events	2003	1783	EU-27
Hydrological events	2004	322	EU-27
Hydrological events	2005	4558	EU-27
Hydrological events	2006	776	EU-27
Hydrological events	2007	295	EU-27
Hydrological events	2008	912	EU-27
Hydrological events	2009	1248	EU-27
Hydrological events	2010	9533	EU-27
Hydrological events	2011	3482	EU-27
Hydrological events	2012	586	EU-27
Hydrological events	2013	11530	EU-27
Hydrological events	2014	4442	EU-27
Hydrological events	2015	2500	EU-27
Hydrological events	2016	6149	EU-27
Hydrological events	2017	1121	EU-27
Hydrological events	2018	834	EU-27
Hydrological events	2019	4892	EU-27
Climatological events	1980	3286	EU-27
Climatological events	1981	2	EU-27
Climatological events	1982	7220	EU-27
Climatological events	1983	4332	EU-27
Climatological events	1984		EU-27
Climatological events	1985	2320	EU-27
Climatological events	1986	3110	EU-27
Climatological events	1987	2365	EU-27
Climatological events	1988	2654	EU-27
Climatological events	1989	2945	EU-27
Climatological events	1990	4296	EU-27
Climatological events	1991	1100	EU-27
Climatological events	1992	8345	EU-27
Climatological events	1993	69	EU-27
Climatological events	1994	607	EU-27
Climatological events	1995	1123	EU-27
Climatological events	1996	466	EU-27
Climatological events	1997	2164	EU-27
Climatological events	1998	852	EU-27
Climatological events	1999	4516	EU-27
Climatological events	2000	2704	EU-27
Climatological events	2001	537	EU-27
Climatological events	2002	1	EU-27
Climatological events	2003	17341	EU-27
Climatological events	2004		EU-27
Climatological events	2005	3670	EU-27
Climatological events	2006	2786	EU-27
Climatological events	2007	2557	EU-27
Climatological events	2008	35	EU-27
Climatological events	2009	381	EU-27
Climatological events	2010	1064	EU-27
Climatological events	2011	508	EU-27
Climatological events	2012	3908	EU-27
Climatological events	2013	765	EU-27
Climatological events	2014	826	EU-27
Climatological events	2015	2309	EU-27
Climatological events	2016	752	EU-27
Climatological events	2017	6697	EU-27
Climatological events	2018	4433	EU-27
Climatological events	2019	601	EU-27

Climate-related hazards, such as temperature extremes, heavy precipitation and droughts, pose risks to human health and can lead to substantial economic losses. Monitoring the impact of such hazards is important for informing policy and ensuring that appropriate actions are taken to minimise damage.

The EU adaptation strategy aims to ‘climate proof’ the EU by supporting informed decision-making and climate change adaptation, particularly in key vulnerable sectors. The EU is party to the UN Sendai Framework for Disaster Risk Reduction (SFDRR), which requires the evaluation of disaster-related losses and economic impacts, and sets a target to reduce such losses by 2030.

Between 1980 and 2019, weather and climate-related extremes accounted for around 81 % of total economic losses caused by natural hazards in the EEA member countries, amounting to EUR 446 billion. This is equivalent to EUR 11.1 billion per year and the cumulative deflated losses are equal to nearly 3 % of the GDP of the countries analysed.

However, because a relatively small number (3 %) of unique events was responsible for a large proportion (> 60 %) of the economic losses, resulting in high variability from year to year, it is difficult to identify trends: the average annual (inflation-corrected) losses were around EUR 6.6 billion in 1980-1989, 12.3 billion in 1990-1999, 13.2 billion in 2000-2009 and 12.5 billion in 2010-2019.

The Intergovernmental Panel on Climate Change predicts that climate-related extreme events will become even more frequent around the world. This could affect multiple sectors and cause systemic failures across Europe, leading to greater economic losses. However, the future cost of climate-related hazards depends not only on the frequency and severity of events but also on several other factors, such as the size of the populations and the value of the assets exposed. Therefore, a comprehensive, integrated approach is required to adapt to and manage the risks. Enhancing society’s resilience to climate change through a focus on prevention, preparedness, response and recovery will be key to the EU’s revised adaptation strategy, currently under development.

Impacts of extreme weather and climate related events in the EEA member countries and the UK (1980-2019)

Country	Losses (million euros)	Loss per sq. km (euros)	Loss per capita (euros)	Insured losses (million euros)	Insured losses (%)	Fatalities
Austria	15415	183777	1911	5010	33	601
Belgium	5000	163788	480	3002	60	2172
Bulgaria	2758	24989	342	145	5	206
Switzerland	19108	462758	2627	9831	51	1158
Cyprus	393	42447	566	8	2	81
Czechia	11991	152039	1157	3888	32	227
Germany	107445	300649	1329	51235	48	11110
Denmark	10810	251892	2016	6369	59	49
Estonia	137	3026	97	36	26	10
Greece	7689	58232	728	148	2	2550
Spain	45329	89594	1080	11681	26	14679
Finland	2037	6019	394	433	21	4
France	67524	106642	1099	33503	50	23491
Croatia	3202	56582	719	77	2	722
Hungary	6362	68390	622	149	2	707
Ireland	4617	66146	1155	2409	52	71
Iceland	95	925	335	52	54	52
Italy	72534	240122	1254	3439	5	20735
Liechtenstein	6	35206	175	3	60
Lithuania	1398	21415	416	7	1	74
Luxembourg	954	368769	2118	562	59	130
Latvia	705	10923	302	52	7	104
Malta	149	471098	382	26	17	7
Netherlands	9205	221581	584	4433	48	1733
Norway	3697	11419	809	1996	54	42
Poland	15966	51061	421	1058	7	1252
Portugal	7591	82310	743	650	9	3118
Romania	12118	50832	560	66	1	1322
Sweden	4205	9588	468	1230	29	47
Slovenia	1819	89750	909	226	12	243
Slovakia	1750	35694	329	114	6	125
Turkey	3862	4929	60	544	14	1751
United Kingdom	53605	215683	894	37278	70	3546

The economic impact of climate-related extremes varies considerably across countries. In absolute terms, the highest economic losses in the period 1980-2019 were registered in Germany followed by Italy then France. The highest losses per capita were recorded in Switzerland, Luxemburg and Denmark, and the highest losses per area were in Malta, Switzerland and Luxembourg. Around 27 % of total losses were insured, although this also varied considerably among countries, from 1 % in Romania and Lithuania to 60 % in Belgium and Liechtenstein.

The EU adaptation strategy aims to promote action at national level, and all countries have already adopted a national adaptation policy. The Climate-ADAPT platform — developed by the European Commission and the EEA — supports action by sharing knowledge on climate change and its impacts, adaptation strategies and plans, and case studies.

No coherent mechanism is currently in place for countries to report losses to the European Commission or the EEA. This will be a key element of the revised EU adaptation strategy, in line with the priorities for action and policy targets of the SFDRR.

Supporting information

Definition

This indicator considers the number of fatalities, and the overall and insured economic losses from weather and climate-related events in EEA member countries since 1980. Hazards considered are those classified as meteorological hazards, hydrological hazards and climatological hazards as used by Munich Re and based on the classification by the International Council for Science (ICSU).

Integrated Research on Disaster Risk. (2014). Peril Classification and Hazard Glossary (IRDR DATA Publication No. 1). Beijing: Integrated Research on Disaster Risk.

Methodology

This assessment is based on the Munich Re NatCatSERVICE dataset and the Eurostat collection of economic indicators, whereas data from earlier years not covered by Eurostat have been completed using data from the Annual Macro-Economic Database of the European Commission (AMECO), the International Monetary Fund’s (IMF) World Economic Outlook (WEO), the Total Economy Database (TED) and the World Bank database.

Data are received from the Munich Re NatCatSERVICE under institutional agreement and have been adjusted to account for inflation. They are presented in 2019 euro values.

Definition of a loss event: the event can occur in several countries; events are counted by country and by year and type of natural hazard.

The European Commission is working with Member States, the ISDR and other international organisations to improve data on disaster losses. The JRC has prepared guidance for recording and sharing disaster damage and loss data, status and best practices for disaster loss data recording in EU Member States and recommendations for a European approach for recording disaster losses. Once comparable national databases on disaster losses are available for all EU Member States and EEA member countries and these data are reported, this EEA indicator can possibly be based on such data.

The analysis reported here includes all EEA member countries and the United Kingdom and Turkey, including that part of the country that is classified by NatCatSERVICE as not belonging to Europe. This is why the results reported here may be slightly different to data reported by Munich Re itself.

Methodology for gap filling

Data gap filling is not necessary.

Policy/environmental relevance

Justification for indicator selection
The rationale for the indicator production has not been identified.

Scientific references

Climate-ADAPT, ‘EU adaptation strategy’, Climate-ADAPT accessed 24 September 2020.
EC, undated, ‘EU adaptation strategy’, European Commission accessed 24 September 2020a
EC, 2018b, ‘EU is ready for climate impacts: Commission evaluates its strategy’, European Commission accessed 10 March 2020.
EC, 2020, Adaptation to climate change — Blueprint for a new, more ambitious EU strategy European Commission, Brussels accessed 1 July 2020.
IPCC, 2013, Climate change 2013: The physical science basis The physical science basis - Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, New York, NY.
IPCC, 2014, Climate change 2014: Impacts, adaptation and vulnerability -Part B: Regional aspects. Contribution of Working Group II to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge
UN, 2015, Sendai Framework for Disaster Risk Reduction 2015-2030, United Nations accessed 24 September 2020.

In April 2013, the European Commission presented the EU Strategy on adaptation to climate change (COM/2013/0216). One of the objectives is better informed decision-making, by further developing Climate-ADAPT as the 'first-stop shop' for adaptation information in Europe. In 2018, the European Commission published an evaluation of the EU Adaptation Strategy (COM(2018) 738) and a revised version is foreseen to be published in 2021.

Article 6 of Decision No. 1313/2013/EU of the European Parliament and the Council on a Union Civil Protection Mechanism obliges the EU Member States to develop risk assessments at national or appropriate sub-national levels and to make a summary of the relevant elements thereof. It is summarised in an Overview of natural and man-made disaster risks the European Union may face (SWD/2020/0330).

The Sendai Framework for Disaster Risk Reduction (UN, Sendai Framework for Disaster Risk Reduction 2015-2030), including ‘Understanding disaster risk’, requires that the signatory countries systematically evaluate, record, share and publicly account for disaster losses and understand the economic impacts at national and sub-national levels.

Targets

No targets has been identified for this indicator.

Data sets uncertainty

Information for Europe can in theory be extracted from different global disaster databases, including the EMDAT database maintained by CRED that places a particular focus on human fatalities, and displaced and affected people, and the NatCatSERVICE database maintained by Munich Re that provides data on insured and overall losses (used in this indicator). The 'disaster thresholds' for an event to be included in these global databases are as follows:

EMDAT: 10 or more people killed and/or 100 or more people affected and/or declaration of a state of emergency and/or call for international assistance;
NatCatSERVICE: Small-scale property damage and/or one fatality.

Over recent years, these global databases have been harmonised, although some differences remain. During recent decades, these databases have improved their reporting, which means that caution is needed in formulating conclusions about trends. In addition, both databases are less suitable for analysing the impacts of smaller events or for analysis at the sub-national level.

Further information on uncertainties is provided in the EEA report on Climate change, impacts and vulnerability in Europe 2016 (http://www.eea.europa.eu/publications/climate-impacts-and-vulnerability-2016/).

Data sources and providersInstitutional mandate

Metadata

DPSIRTopicsTagsTemporal coverageGeographic coverage

TypologyUN SDGsUnit of measureFrequency of disseminationContact

BISE	Biodiversity Information System for Europe
Climate-ADAPT	Climate Adaptation Platform
Copernicus In Situ	Copernicus in situ component
Copernicus Land	Copernicus land monitoring

European Industrial Emissions Portal	EIEP
Forest Information System for Europe	FISE
Information Platform for Chemical Monitoring	IPCHEM
Marine Water Information System for Europe	WISE-Marine
Fresh Water Information System for Europe	WISE-FreshWater

Economic losses from climate-related extremes in Europe

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