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Extreme weather events: Policy measures to cushion the effects on workers, businesses and citizens

How are EU Member States cushioning the effects of extreme weather events on workers, businesses and the broader economy? This article presents some of the 67 short-term adaptation and compensation measures captured in the EU PolicyWatch database between May 2023 and September 2024. They provide insights into the various strategies adopted by EU Member States to address the challenges brought about by extreme weather events.

Introduction

Extreme weather events refer to meteorological phenomena that significantly deviate from the norm in terms of frequency or magnitude. The Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report defines an extreme weather event as ‘an event that is rare at a particular place and time of year’.

In the context of the EU PolicyWatch database, this category also includes extreme climate events, defined in the same IPCC report as ‘a pattern of extreme weather that persists for some time, such as a season’. In more general terms, extreme weather events include extreme temperatures, heavy precipitation leading to pluvial and river floods, droughts, and wildfires caused by high temperatures.

According to the European Environment Agency, weather and climate-related extremes resulted in economic losses amounting to €59.4 billion in 2021 and €52.3 billion in 2022 across EU Member States. Over the past four decades, they have caused between 85,000 and 145,000 fatalities. The cost to society is huge, with all available indicators pointing to an increase in the scale and frequency of these events, posing challenges for governments, businesses and EU citizens.

 

Policy context

The increasing occurrence of extreme weather events has had a strong influence on European policies.

In 2019, the EU established several objectives under the European Green Deal, aiming for carbon neutrality by 2050. These objectives were enshrined in the European Climate Law, which sets an intermediate target of a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels and climate neutrality – achieving net-zero emissions – by 2050.

Achieving these ambitious objectives may have substantial repercussions on the economies and the work-related policies adopted by the EU Members. Reducing emissions risks triggering de-industrialisation and a loss of competitiveness in certain sectors. To deal with these problems, the European Commission adopted the Just Transition Mechanism, a financial support tool designed to ensure a socially sustainable transition to climate neutrality.

Additionally, the EU Solidarity Fund, established in response to the severe floods in Central Europe in 2002, provides financial assistance for public emergency and recovery operations. The fund supports national authorities in EU Member States and accession countries.
 

Policy responses by EU Member States

Financial support

The bulk of the measures recorded in the EU PolicyWatch database focus on financial support, such as direct subsidies, damage compensation, deferral of payments or liabilities, income support, or other forms of facilitated access to financing.

Fast access to liquidity is crucial in the aftermath of extreme weather events. For instance, in December 2023, the Slovenian Government adopted the Act on Reconstruction, Development and Provision of Financial Resources (ZORZFS). This legislation provides loans at a subsidised interest rate to those affected by flooding and landslides and offers investment incentives to businesses that suffered damages.

The beneficiaries of these measures are usually companies and enterprises whose infrastructure or production capabilities were hit by extreme weather events. However, in other cases, aid is provided directly to citizens to support reconstruction efforts. For example, in autumn 2023, Norway allocated €0.9 million to private individuals to cover cleanup costs following severe flooding events.

These examples illustrate some of the financial support measures available. For a more detailed analysis, Table 1 provides an overview of all cases.

 

Investing in better protection

Due to the increasing challenges posed by extreme weather, EU Member States are implementing innovating strategies. These measures range from structural interventions to targeted initiatives to protect the well-being and safety of workers.

In France, the Héphaïstos protocol, which involves deploying armed forces to combat forest fires, was extended in 2023 to cover the entire mainland, expanding from its previous focus on the south of the country. Additionally, new Civil Protection Corps have been created, tasked with responding to all types of natural disasters.

The French Ministry of Health and Solidarity published a guide aimed at preventing heat-related injuries and safeguarding the well-being of workers (Ministère des Solidarités et de la Santé, 2021). In the ministerial instructions of June 13 2023, the Ministry of Employment tasked Labour inspectors with reminding employers to assess heat-related risks and adapt their work organisation to avoid over exposure to high temperatures, particularly for vulnerable workers.

In the Netherlands, the government allocated €800 million for measures against drought as part of the Delta Plan Freshwater (2022–2027). This ambitious initiative contains studies on the availability of freshwater, measures to limit water salinisation in the Afsluitdijk dam and research into cultivating salt-tolerant crops.

Early warning and information measures

While early warning and information cannot prevent extreme weather events, they can help in cushioning their effects. Damage to infrastructure and threats to human life can be minimised when information is shared promptly.

In Bulgaria, BG-ALERT was rolled out as an early warning and alert system. It distributes messages to warn citizens about dangerous events, such as disasters or emergencies, and other situations posing a threat to life, health or property. These alerts are transmitted through mobile operator networks to end-user devices, including mobile phones, tablets and certain smartwatches.

In Czechia, the INTERSUCHO portal provides up-to-date information on droughts, including short-term and long-term forecasts, the level of water saturation of the soil and the impact on vegetation. It also operates in Slovakia and, to a limited extent, other Central European countries.

Insurance schemes

In France, a reform of the agricultural insurance scheme introduced a new system based on national solidarity and risk-sharing between the State, farmers and insurers. The system ensures that even farmers who did not take up insurance are covered by national solidarity funds in cases of exceptional hazards that result in a loss of at least 50% of crops or 30% in arboriculture, small fruit or meadows. In addition, the state subsidy on insurance premiums and contributions has increased to 70%.

Sector-specific support

While extreme weather events impact on the overall European economy, certain sectors are more vulnerable than others. The agricultural sector, heavily exposed to damages from flooding or crop losses due to drought, benefits from many measures recorded in the EU PolicyWatch database, usually in the form of direct financial assistance and facilitated access to credit.

However, other sectors also suffer from the impact of extreme weather events. For instance, following the forest fires that hit Portugal in July and August 2022, the Council of Ministers adopted an ordinance to support the cash flow of tourism businesses, particularly micro, small and medium operators. The support was provided in the form of an interest-free loan, repayable over seven years, with an initial grace period of 18 months.

In France, the Caisse des Congés Intempéries BTP scheme (CIBTP) manages the ‘unemployment intempéries’ (adverse weather unemployment scheme), which applies to building and civil engineering companies. In the event of a work shutdown due to extreme heat, employees continue to be paid directly by their employer. The employer can then claim partial reimbursement for these payments from the CIBTP.
 

Social partners involvement

Trade unions play a strong role in advocating for worker protection in the cases of extreme weather events. Employers, in addition to their responsibility of safeguarding their workers, also have a strong interest in resuming business operations as quickly as possible after such events. However, data from Eurofound’s EU PolicyWatch shows that social partner involvement in addressing extreme weather events remains the lowest among all policy contexts included in the data collection.

In Poland, the Independent Self-governing Trade Union Solidarity (NSZZ Solidarność) called on the government to introduce policy changes aimed at improving working conditions during periods of extremely high temperatures.

In Austria, the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB) adopted a paper demanding updated regulations to protect workers from the effects of the effects of extreme heat (ÖGB, 2021).  The proposals included requiring employers to implement appropriate measures when workplace temperatures exceed 25 ° C and mandating the cessation of outdoor work when temperatures rise above 32°C. Additionally, the ÖGB set up a dedicated disaster fund to assist workers affected by damages caused by extreme weather events.

In Slovenia, social partners took part in the HEAT-SHIELD project, a research programme funded by the European Commission under the Horizon 2020 initiative. The project focused on addressing the negative effects of climate change, particularly the impact of rising workplace temperatures on the working population.
 

Conclusion

EU Member States have implemented a variety of measures to cushion the effects of extreme weather events, including various forms of financial aid, insurance schemes, regulatory measures, and alert and information systems. Although all sectors can be affected by these events, industries like tourism and agriculture are particularly vulnerable.

State authorities are the main actors in implementing these measures. However, greater involvement from social partners could help to identify the most appropriate forms of aid and the best ways to protect workers and support businesses. At the same time, European institutions must also continue to support the actions of Member States. Without coordinated and supportive EU-level actions, measures taken at the national level may not achieve their full impact.

For further insights, the EU PolicyWatch database is available online on the Eurofound website, offering easy access to all the policy measures mentioned in this article.
 


Image © Budimir Jevtic/Adobe Stock 

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