European agriculture loses billions annually due to climate change

The European Union's agricultural sector loses an average of 28.3 billion euros annually from extreme weather events, which are being exacerbated by climate change, according to a study cited by Reuters. Only a small part of the losses is insured, warns a new report supported by the EU. This figure represents about 6% of the bloc's annual crop and animal production, according to a report published on Tuesday by insurance broker Howden and supported by the European Commission and the European Investment Bank (EIB).

• Massive losses, minimal coverage

The study highlights that only 20-30% of farmers' losses caused by climate change are covered by insurance, whether public, private or mutual. "We need to do something to cover the rest of the losses," said Christophe Hansen, the European Commissioner for Agriculture, urging member states to redirect farm subsidies to combat climate risks.

• Drought, the main driver of losses

Drought is responsible for more than half of all losses in European agriculture. Without serious action, the report predicts that average losses for farmers will increase by up to 66% by 2050. In a catastrophic scenario for 2050, Spain and Italy alone could record annual losses of euro20 billion due to climate impacts.

• Southern Europe - the epicentre of the climate crisis

Southern European countries are already severely affected by drought and extreme weather events. This climate vulnerability could turn agriculture in these regions into an extremely risky sector without major investments in adaptation. Paradoxically, agriculture is not only a victim, but also a significant contributor to the climate crisis. The European agricultural sector is responsible for methane emissions, pollution caused by fertilizers and industrial water use. At the same time, farmers' unions have strongly criticized the EU's green agenda, organizing massive protests to demand a relaxation of climate policies, amid increasingly acute economic difficulties on the ground.

• Financing and investments in infrastructure

The European Investment Bank intends to support farmers' adaptation by: Financing investments in irrigation systems; Providing loans and guarantees for agriculture; Increasing support for projects in the field of water management.

These financing directions will be included in the European Commission's strategy on water resources, which is currently being worked on, according to sources cited by Reuters. The study warns that, without decisive interventions, European agriculture faces an unsustainable economic future, and food security could become a major problem in some regions. Adapting agricultural systems to new climate realities is becoming not only an economic priority, but also a social and strategic one.