Austrian report warns of severe climate-related economic losses

VIENNA, 18th June, 2025 (WAM) -- The Austrian Panel on Climate Change (APCC) warned that rising temperatures and prolonged droughts are having an increasingly damaging impact on the country’s forests, with annual economic losses due to climate change potentially reaching around EUR10.8 billion by 2050 if no effective mitigation measures are implemented.

According to the latest Austrian Assessment Report on Climate Change (AAR2), the average temperature in Austria has risen by 3.1 °C since 1990, a rate more than double the global average increase of approximately 1.2 °C.

The 800-page Second Climate Change Assessment Report, prepared by 200 scientists from around 50 institutions and based on nearly 5,000 studies conducted over three years, provides a comprehensive overview of Austria’s current climate situation. It outlines the challenges expected in the coming years and highlights key policy options to help the country meet its climate targets.

The report warned that the impacts of climate change in Austria are expected to intensify, leading to more frequent and severe droughts, decreased summer rainfall, and significant drops in groundwater levels, particularly in eastern regions. It projected a 25 percent reduction in groundwater levels in eastern Austria by 2050, and a one-third reduction across the region, alongside increased risks of heavy rainfall and storms causing flooding.

Extreme weather events and storms are already causing significant damage in Austria, currently estimated at around EUR2 billion annually. Climate experts warned that this figure could rise to approximately EUR5 billion by 2030.