Extreme heat to cost EU at least EUR 17 billion in annual productivity by 2030

Brussels – Climate change is costing Europe tens of billions of euros. The exact amount is likely to be very steep, but to get an idea, “heat-related productivity losses alone may account for at least EUR 17 billion annually by 2030.” This is the finding of a study by the European Parliament’s Think Tank, commissioned by the Committee on Employment and Social Affairs, to understand the extent of a phenomenon already underway and to enact remedies in the name of growth and economic prosperity. ​

There is still no final data, as it is just beginning to be collected, and what is emerging is not encouraging: “losses due to reduced labour productivity during heatwaves have already reached EUR 50–80 billion (0.3–0.5% of EU GDP),” the European Parliament study denounces. The study adds to the European Central Bank’s alarm about the adverse effects of heat on productivity and the resulting losses in competitiveness. Concerns are now materializing in costs and the scope of the challenge. 

[photo: Saverio De Giglio/imagoeconomica]

The European Union Agency for Safety and Health at Work (EU-OSHA) notes that “approximately one third of EU workers are exposed to climate-related risks,” with 20 percent (one in five) reporting exposure to extreme heat, 19 percent to poor air quality, and more than one in ten experiencing intense sun exposure. Approximately 7 percent of workers have already suffered from a heat-related illness. Skilled, semi‑skilled, and unskilled workers report exposure to risk factors linked to climate change, highlighting a “non‑uniform” yet widespread vulnerability across worker groups and sectors.​

There are multiple occupational health and safety risks from extreme weather events. Heat stress reduces physical and cognitive abilities and can lead to dehydration, heat stroke, and even fatal outcomes. At the same time, floods, storms, and cold waves expose workers to electrical hazards, falling objects, and respiratory stress. “Mental health is also compromised,” especially among rescue workers and workers performing outdoor work,” the study further notes. Extreme weather events (heatwaves, droughts, storms, floods and cold spells, among others) “are
increasingly affecting the health, safety, and productivity of workers across the European Union” and will continue to do so unless action is taken through prevention and risk measures.

The EU risks the Draghi agenda being stalled by the weather, starting with the heat. Also, because the European Parliament’s experts warn, “Healthcare, insurance, and quality-of-life costs are other components to consider, even though current data is lacking to estimate them properly.” It is still unclear how much climate change will cost, but the bill is likely to be steep, and Europeans and the EU’s competitiveness will pay the price.

 After all, the study concludes, work-related accidents and illnesses of all causes already cost the EU economy some EUR 476 billion a year. “As climate change amplifies workplace hazards, a growing share of this burden will stem from extreme weather.“