Climate change and its impact on the economy

Background

Climate change poses a serious threat to economic and social development, with annual costs potentially reaching EUR 600 billion between 2024 and 2030. Delaying investment in mitigation and adaptation will harm the economy, as well as infrastructure, agriculture, and public health. In October, the EESC stressed the urgency of action while highlighting the economic opportunities from climate investment. By investing in sustainability and promoting coordinated efforts, the EU can reduce risks and unlock opportunities for innovation and growth.

 

Key points

In the opinion, the EESC

  • stresses that no time can be lost in adopting and implementing all necessary measures to reduce emissions (mitigation) and adapt to the new conditions (adaptation), including introducing prices on emissions and a carbon tax. A long-term strategy must be adopted to safeguard public health;
  • considers that investment linked to climate change is an historic economic opportunity to support and seize the enormous innovation and development potential in the EU Member States and that the correct response to climate change is to seize the new opportunity that the technological and innovation potential in this area presents for the economy;
  • considers that coordinated action is imperative in order to respond to climate change. This will involve a collective commitment at national, subnational, EU and global level, in all areas such as economic and social areas, with clear, well-defined roles and responsibilities at all levels of the decision-making process;

…

Additional information

- EESC section: Economic and Monetary Union and Economic and Social Cohesion (ECO)

- Opinion type: Own-initiative opinion

- Rapporteur: Juraj SIPKO (Civil Society Organisations - GR III Slovakia)

- Reference: ECO/645-EESC-2024

- Date of adoption by section: 11/10/2024

- Date of adoption in plenary: 23-24/10/2024

Contact

Thomas Kersten

Press Officer

Tel.: +32 (0) 2 546 8931

Email: thomas.kersten@eesc.europa.eu

Anna Pantazi

Policy Officer

Tel.: +32 (0) 2 546 9231

Email: eco@eesc.europa.eu

Related content

Adopted on 23/10/2024 - Bureau decision date: 18/01/2024

Climate change and its impact on the economy

Reference
ECO/645-EESC-2024
Rapporteur
Juraj SIPKO
Civil Society Organisations - GR III
Slovakia
Plenary session number
591
-

Climate change is an existential threat for the European economy. Therefore, a comprehensive approach is needed. In this context, based on the empirical and data analyses related to the impact of climate change on the real economy, macroeconomic and financial stability is essential. As things currently stand, intensified natural disasters will lead to unprecedented costs that will have an unpredictable impact on public finance.

The European economy is currently on a downward trend. This will lead to lower revenue and, at the same time, higher demand for spending – mainly related to the costs of climate change, higher borrowing costs and negative trends in demographic development.

Download — EESC opinion: Climate change and its impact on the economy
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  • Record of proceedings ECO/645

Climate change is an existential threat and an economic opportunity for the EU

In a recent set of recommendations adopted in October, the European Economic and Social Committee (EESC) called for immediate measures to combat climate change, while highlighting the economic opportunities it also presents. By investing in sustainable practices and promoting a collaborative global approach, the EU can mitigate the risks associated with climate change.