Climate action is the world’s cheapest insurance policy, study says

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🗞️ Driving the news: A study from the Vienna University of Economics and Business argues that climate action is the world’s “cheapest insurance policy”
• Between 1980 and 2021, extreme weather caused over €560 billion in EU losses, with only 25–33% insured
• By 2050, climate-related production losses in the EU could exceed €5 trillion

🔭 The context: Governments are increasingly acting as “insurers of last resort,” covering disaster relief, infrastructure rebuilding, and health costs
• With 3°C of warming, EU GDP could fall by around 10%
• Only 1–2% of global GDP invested in mitigation and adaptation could avert losses of 11–27%

🌍 Why it matters for the planet: Unchecked warming is eroding private insurance markets, leaving regions uninsurable and ecosystems exposed
• Deforestation, heatwaves, floods and storms amplify biodiversity loss and ecosystem collapse
• Early adaptation could cut total climate losses by up to 70%, limiting irreversible environmental damage and stabilising climate systems

⏭️ What’s next: EU policymakers face mounting pressure to scale adaptation and resilience spending, as climate-related health impacts already cost up to €400 billion annually

💬 One quote: “Inaction is the liability; climate action is the only solvent fiscal strategy.” — Prof. Sigrid Stagl

📈 One stat: Climate-related health impacts in Europe have claimed up to 80,000 lives and cost €400 billion per year

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