Potential heatwave may threaten Germany's economic expansion.
In a changing climate, the construction industry in Germany may find unexpected benefits from working during winter, as milder temperatures offer a respite from the harsh conditions that can impact construction. However, the impact of heatwaves is a growing concern, with economists warning of potential economic losses.
According to recent reports, Europe, including Germany, is expected to bear significant impacts in agriculture, infrastructure, and energy sectors due to heatwaves. While precise estimates for Germany by 2035 are not explicitly stated, the global economy could lose up to 10% of its total value by 2050 due to escalating climate impacts, including heat-related disruptions.
Heatwaves have already caused crop failures and strain on water resources in parts of Europe, which would translate into economic costs. In Spain, growth in gross domestic product (GDP) could be 1.4 percentage points lower this year due to such weather events. Similar impacts are seen in other European countries, with Italy (-1.2 percentage points), Greece (-1.1), and China (-1.0) also affected.
The consequences are particularly severe for Southern European countries, according to an investigation by Allianz and the World Economic Forum. In the USA, growth is likely to be dampened by 0.6 percentage points.
On a broader scale, the global economy could face annual productivity losses of $2.4 trillion by 2035 due to heatwaves. To mitigate these losses, companies in Germany may need to adapt to extreme heat becoming the norm.
One potential solution is shifting work to morning and evening hours, which could help offset productivity losses due to extreme heat. Buildings in Germany should also be planned and constructed to heat up less and cool better to prepare for climate change.
International efforts like climate finance aim to mobilize trillions of dollars by 2035 to mitigate and adapt to such losses globally, indicating recognition of these rising economic risks from heatwaves and other climate impacts.
While awareness of climate change measures is present in companies and cities, implementation will take time. The construction industry, for instance, is making strides in adapting to climate change, but more needs to be done to ensure a sustainable future for Germany and Europe.
Community policy should incorporate strategies to address the economic losses from climate-change-induced heatwaves, considering the potential impact on industries like construction. Employment policy could be revised to encourage work during cooler hours to boost productivity, while environmental-science research may provide valuable insights into climate-resilient construction. Moreover, industry leaders could invest in industry-relevant scientific fields, such as climate science and engineering, to stay abreast of the changing climate and develop effective climate adaptation strategies.
