Assessment of EU and Member States adaptation investment needs – Study on the macro-economic impacts of the climate transition

This report presents a robust, evidence-based assessment of the investment needs required to adapt to climate risks across the European Union and its Member States, framed within the broader analysis of the macro-economic impacts of the climate transition. As climate impacts intensify, understanding the scale and distribution of adaptation investment needs becomes increasingly important for effective policy planning, budget allocation, and strategic prioritisation.

The assessment aims to quantify the cost of implementation of adaptation actions necessary to strengthen climate resilience in Europe, thereby supporting the European Commission’s work on adaptation and resilience and its efforts to guide Member States in developing coherent and cost-effective responses to climate risks, as well as to mainstream adaptation into fiscal frameworks. These considerations are also shaping the Commission’s initiative to establish a unified framework to accelerate climate resilience across EU Member States.

In this context, CMCC contributes through cutting-edge science, advanced risk management tools, investment needs assessments, and expert input in consultation processes. A key example is the Assessment of EU and Member States’ Adaptation Investment Needs, co-authored under ATEC leadership, which represents one of the most up-to-date evaluations of adaptation financing in Europe.

The analysis highlights significant differences across countries, reflecting diverse levels of exposure and vulnerability. For instance, Italy’s annual investment need is estimated at around €10 billion, among the highest in the EU. While infrastructure renewal accounts for the largest share, the country’s climate “hotspot” geography requires substantial additional investment to safeguard agricultural production and reduce wildfire exposure.

Overall, the report provides a comprehensive analytical basis to inform decision-making and to support the scaling up of adaptation investments, contributing to a more resilient and climate-ready European economy.