The European Investment Bank (EIB) plans to double its financing for climate adaptation to at least €30 billion by 2030, as Europe steps up efforts to protect infrastructure, water supplies and agriculture from the growing economic toll of extreme weather.
“Climate adaptation is a no-brainer,” EIB President Nadia Calviño said, arguing that every euro invested in prevention saves €10 in damage and repairs.
Wildfires, floods and heatwaves caused an estimated €43 billion in economic losses across the European Union in the summer of 2025, according to a joint study by the European Central Bank (ECB) and the University of Mannheim. The study projects that the cumulative economic impact could reach €126 billion by 2029.
More than 600,000 hectares have burned across the EU this year, more than twice the long-term average over the past two decades, with temperatures registering their highest across Europe in June alone.
European Commission President Ursula von der Leyen announced a European heatwave plan during her inaugural State of the Union speech in September, after a dramatic summer that saw at least 35,000 excess deaths linked to heatwaves.
From cutting emissions to limiting the damage
The EIB's €30 billion financing announced on Thursday marks a renewed emphasis on preparing for the consequences of climate change, alongside efforts to cut greenhouse gas emissions.
The EIB, which sometimes brands itself as Europe's climate bank, explicitly recognised that investment is not keeping pace with growing climate adaptation needs.
"While understanding of physical climate risks has grown significantly in recent years, adaptation investment remains constrained by limited project pipelines, capacity gaps and financing barriers," the EIB's second climate adaptation plan says.
"Accelerating adaptation will require stronger project preparation, better technical capacity and greater mobilisation of public and private capital."
The financing plan targets investment in energy networks, public buildings, water systems and farming, while helping EU companies bring climate adaptation technologies to market.
The financing package will combine loans, guarantees and advisory support, with a focus on making adaptation projects easier to identify and finance, including for smaller businesses. The EIB will also develop tools to help public authorities and companies assess local climate risks.
The initiative gives climate policy a direct economic and competitiveness dimension, as governments face the prospect of mounting costs from droughts, floods, heatwaves and wildfires. It also positions the EU's lending arm as a tool for mobilising investment in resilience technologies.
However, the announcement leaves open how the €30 billion will be distributed between countries and sectors and how much additional private investment the plan is expected to attract.
Rummaging for money
EU countries are already struggling with little fiscal space, with talks on the next multi-annual budget going sour at the latest gathering of EU leaders on 15-16 October.
However, Climate Action Commissioner Wopke Hoekstra recently acknowledged the tight fiscal situation but maintained that upfront investment is cheaper than repeatedly paying for climate damage.
"All evidence shows that making the upfront investments is way cheaper than just being hit by fire, being hit by floods and then paying for the damage. That's just way more costly," Hoekstra said.
The Commission's EU climate resilience framework is expected next week and it should bring more clarity on the Climate Insurance Alliance, also touted by von der Leyen during her September inaugural speech.
Paul Fox, senior research and advocacy officer at the watchdog Finance Watch, said that insurance is key to a functioning economy and cutting off the most exposed regions is becoming a market failure that the EU must address.
"Postal services reach communities across Europe not because every location is profitable, but because they provide a service people need. Natural hazard insurance should be guaranteed on the same principle. It gives people the security to build their lives and the confidence to invest in the future," said Fox.