The Croatian Chamber of Commerce says climate change is harming the national economy, requiring urgent investment in adaptation and energy infrastructure.
Key facts
- •The Croatian Chamber of Commerce estimates that climate change damages in Europe could reach 126 billion euros annually without adaptation.
- •Croatia is advised to invest an additional 1.1 percent of its GDP annually for climate adaptation and decarbonization.
- •The HGK identified the modernization of the electricity grid as the most important infrastructure project for the country's energy transition.
- •Tourism in Croatia may face shifts in visitor patterns due to extreme summer heat.
- •The UN World Food Programme warned that climate change, alongside other factors, is increasing the number of people facing hunger.
The Croatian Chamber of Commerce (HGK) has warned that climate change poses a serious economic risk to Croatia, citing record heat, droughts, and fires. Vice-president Marija Šćulac stated that the country is particularly vulnerable due to its economic structure and must prioritize adaptation to maintain competitiveness.
By the numbers
Economic Impact and Adaptation Costs
According to World Bank estimates cited by the HGK, Croatia needs to invest approximately 1.1 percent of its GDP annually into climate adaptation and decarbonization. Šćulac warned that while this is a significant cost, delaying action will be more expensive in the long run. She emphasized that climate resilience is now a matter of economic competitiveness rather than just environmental protection.
Vulnerable Economic Sectors
Multiple sectors are facing direct consequences from extreme weather. Agriculture is suffering from reduced yields due to heat and drought, while the tourism industry may need to adjust its business models as high temperatures alter guest habits. Additionally, the energy sector faces pressure from increased electricity consumption, necessitating the modernization of the power grid and the integration of battery storage systems to support renewable energy.
Broader European and Global Context
The HGK noted that extreme weather is impacting food production across Europe and globally, contributing to rising prices. Reports from England, Germany, and South Korea highlight severe agricultural losses and market price spikes. The UN World Food Programme further warned that climate disruptions, when combined with economic instability and conflict, threaten to increase global hunger levels.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Total Croatia News.
