A recent joint report by the European Investment Bank (EIB) and the European Commission reveals that the European agriculture sector is currently losing over €28 billion annually due to extreme weather events. The report, released on May 20, 2025, warns that these losses could increase significantly by 2050 if climate change continues unchecked.
The study advocates for stronger EU-level risk management in farming, with emphasis on expanding insurance options for producers. Currently, only 20% to 30% of climate-related losses are insured across the EU. The report highlights that publicly supported insurance is generally more effective than post-disaster compensation programs.
Publication of the report coincided with an EIB-Commission conference in Brussels on May 20, 2025, focusing on insurance and access to finance for farm resilience and adaptation in the EU. The report recommends the EU to scale up the adoption of reinsurance and catastrophe bonds to protect EU budgets and provide rapid-response funding when disasters strike, enabling faster recovery for farming communities.