Europe’s Farm Sector Loses €28 Billion a Year From Climate Risks

The European Union’s agriculture industry is losing €28 billion ($31.5 billion) a year due to increasing climate risks, such as droughts and flooding, according to a new study.

Those losses from adverse weather equate to about 6% of production, according to a report published Tuesday by the European Investment Bank and the European Commission. Climate-related damages, which are mostly uninsured, could climb to €40 billion by mid-century, it said.

Extreme weather in recent years has led to wash-out harvests and threatened food security at a time when European nations are seeking to shore up supply chains against shocks. Following protests by farmers, the 27-nation bloc set out a new vision for agricultural policy and simpler financing.