Extreme heat could cost Italy more than $13 billion a year

The Italian business association Confesercenti has warned that extreme heat could cost Italy's economy between €6 billion and €12 billion a year, equivalent to 0.2% to 0.4% of the country's gross domestic product (GDP).

According to the Italian news agency ANSA, the association said that increasingly frequent periods of intense heat are driving up energy costs, reducing productivity, forcing businesses to make additional investments, and cutting turnover in sectors most exposed to high temperatures.

"Living with 30 to 60 days of extreme heat each year could cost the Italian economy between €6 billion and €12 billion," Confesercenti said.

The estimate includes the combined impact of higher energy consumption, reduced labor productivity, mandatory investments to adapt to rising temperatures, and a decline in consumer spending.

Confesercenti President Nico Gronchi described extreme heat as “a real climate tax” that has become a structural economic factor.

“It affects investment, productivity, spending, and consumer habits, including tourism,” Gronchi said.

He warned that the economic impact of rising temperatures cannot be borne by households and businesses alone.

“This is a challenge that cannot be overcome by leaving the solution solely to the initiative of families and businesses. Structural measures are needed,” he said.

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