Greece faces significant challenges due to climate change, according to recent findings by the Foundation for Economic and Industrial Research (IOBE), a private, non-profit, non-partisan public-benefit research organisation.
The IOBE’s report, titled “Assessment of the Impacts of Climate Change on Six Key Sectors of the Greek Economy” highlights the primary sector, industry, finance, Greek households, entrepreneurship, and tourism as sectors in Greece most vulnerable to climate change.
If no mitigation measures are taken, the report warns that Greek disposable income could shrink by up to 10%, Greece’s GDP could drop by up to $18.93 billion (€16 billion) annually, and approximately 327,000 full-time jobs could be lost.
In a press conference, Nikos Vettas, General Director of IOBE, noted that although Greece has “expanded and deepened” its tourism offering in recent years, it remains “primarily a summer product” compared to other countries.
According to the IOBE report, Greece’s tourism sector is heavily seasonal and summer-oriented, and climate change related losses may reach $2.6 billion (€2.2 billion), while 38,000 jobs could disappear annually if no measures are taken.
Opportunities to mitigate the effects of climate change for tourism include extending the season and promoting alternative tourism models, which could instead increase GDP and create new jobs.
The IOBE report noted that, over the span of three years, climate change could cause an estimated $1.65 billion (€1.4 billion) worth of damage to Greece’s primary sector, taking out 58,000 jobs in the process. Up to 10% of Greece’s farming units may never recover. This would undermine food security, increase the need for imports, and exert inflationary pressure on the Greek economy.
The IOBE report also highlighted the multiple potential impacts of climate change on Greek households, such as reduced income, higher fixed expenses, increased energy poverty, and shifts in consumption patterns.
Lastly, the report also identifies a significant insurance gap against natural disasters, noting that climate-related damages reached $4.72 billion (€4 billion) last year in Greece, up from $1.18 billion (€1 billion) the previous year.
