How could extreme heat cost Italy over $13B a year?

Extreme heat could cost the Italian economy between €6 billion ($7 billion) and €12 billion ($13.8 billion) annually, equivalent to 0.2 percent to 0.4 percent of gross domestic product (GDP), the Italian business association Confesercenti warned on Saturday.

The group said 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, Italian news agency ANSAreported.

“Living with 30 to 60 days of intense heat every year can weigh on the Italian economy by between €6 billion and €12 billion,” Confesercenti said.

The estimate includes the combined impact of higher energy consumption, lower labour productivity, compulsory investments to adapt to rising temperatures and weaker consumer spending.

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