Paris, France – Wildfires and extreme heatwaves sweeping across France, Spain, and other parts of Europe have caused more than €3 billion in economic losses this year, according to an analysis by the Financial Times. This underscores the increasingly high cost of climate change. Nearly half a million hectares burned in just the first two months of the fire season. These fires have resulted in an estimated €3.1 billion in losses across the five worst-affected eurozone countries. These include Portugal, Greece, and Romania.
This figure far exceeds the European Commission’s estimates. Typically, those estimates put the average annual impact on the entire EU at €2.5 billion. These estimates are based on the cost of “rehabilitation” to restore the burned areas to their original condition. Additionally, experts anticipate that the total losses will be much higher as the assessment of damage to property, crops, and tourism continues.
In addition to forest losses, further costs loom due to the declining water levels in the Rhine and Danube rivers. This has disrupted freight transport and reduced production at major German chemical companies. Record low water levels have also forced the shutdown of a nuclear power plant in Hungary. Furthermore, a reactor in Romania, which relies on river water for cooling, has been shut down.
In France, defense and aerospace industries in the Gironde region were severely impacted. Major companies such as Safran, Dassault Aviation, and Ariane Group were forced to suspend production and evacuate employees. The Gironde Chamber of Commerce and Industry reported that at least 40,000 businesses were affected. Out of these, 19,500 ceased operations entirely. Meanwhile, in Spain, wildfires consumed approximately 18,500 hectares of farmland and pasture near Madrid. This occurred amidst economic warnings of escalating indirect costs. These indirect costs include healthcare expenses resulting from air pollution.
