Extreme Heat Could Cost Italy Up to €12 Billion a Year, Business Group Warns

International

Confesercenti says rising temperatures are increasing costs, reducing productivity and beginning to affect tourism demand

Extreme heat could cost the Italian economy between €6 billion and €12 billion annually, equivalent to 0.2% to 0.4% of GDP, according to Italian business association Confesercenti.

The organization warns that increasingly frequent and prolonged heatwaves are becoming a structural economic challenge, driving up energy costs, reducing labour productivity and forcing businesses to invest in measures to cope with higher temperatures.

Tourism also affected

Confesercenti estimates that living with between 30 and 60 days of extreme heat each year could have a significant impact on the country's economy. The calculation includes higher energy consumption, lower workplace productivity, mandatory climate adaptation investments and weaker consumer spending.

According to the association, sectors most exposed to high temperatures are already experiencing declining turnover, while changing consumer behaviour is also beginning to influence tourism demand.

Call for structural measures

Confesercenti President Nico Gronchi described extreme heat as "a real climate tax" that has become a permanent economic factor.

He said rising temperatures are influencing investment decisions, productivity, consumer spending and travel behaviour, adding that tourism is increasingly feeling the effects of prolonged heatwaves.

Gronchi stressed that the challenge cannot be addressed by households and businesses alone and called for long-term structural measures to help the economy adapt to changing climate conditions.