Extreme heat could cost Italy over $13B annually, business group warns

Extreme heat could cost the Italian economy between €6 billion ($7 billion) and €12 billion ($13.8 billion) annually, equivalent to 0.2% to 0.4% 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 ANSA reported.

"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 labor 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.

"It affects investments, productivity, spending and consumer habits, including tourism," Gronchi said.

He warned that the economic impact of rising temperatures could not be addressed solely by individual households and businesses.

"It is a challenge that cannot be overcome by leaving the problem to the initiative of individual families and businesses. Structural interventions are needed," he said.