Cost of heat in Europe
Out of the total EUR 822 billion losses in the EU member states due to climate and extreme weather events between 1980 to 2024, 18% were associated with heat waves (EEA, 2025). Economic losses have been increasing over time with a 54% increase from 2009 to 2024. Out of the fatalities related to climatic and meteorological hazards the vast majority (97%) were due to heatwaves.
Heat has significant implications on productivity and labour supply as well as economic activity and GDP per capita growth. The 2024 Europe Lancet Countdown report showed that an increase in temperatures in the period 1965-2000 resulted in a decline in the average number of working hours per person per year by 0.22% compared to 1965-1994. GDP per capita growth in southern Europe was 0.98% lower in 2020 due to higher (or lower) temperatures compared to 1981-2010 average (Van Daalen et al, 2024).
The 2021 EU Adaptation Strategy aims to build resilience and better manage climate risks to reduce monetary losses from weather- and climate-related events. Evaluating adaptation measures and quantifying the health-related economic losses and benefits is crucial to support decision makers and improve adaptation effectiveness; however data to carry out these assessments remains limited.