This week’s punishing heatwave is hitting Europeans where it hurts – and not only in terms of physical discomfort. Household costs are spiking as power prices hit record highs, parents scramble for emergency childcare and outdoor workers lose hours they can’t afford to miss.
New research published this week by Climate Analytics reveals that combined heat and drought events are reducing average household incomes by almost three per cent across Europe.
If global warming reaches 2.7°C by 2100 – the trajectory under current global policies – the average European household could see its income fall by 27 per cent. Limiting warming to the Paris Agreement’s 1.5°C would cut this down to seven per cent.
“The massive heatwave now sweeping across Europe is already threatening people’s health, livelihoods and ability to work,” says Jessie Schleypen, lead author of the study and senior climate economist at Climate Analytics. “Where extreme heat coincides with drought, the damage can be much greater.”
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