As a part of the ACCREU research project, a joint webinar series together with the sister projects CROSSEU and SPARCCLE is organised.
The third webinar entitled “The macroeconomics of adaptation: lessons learned from the 3 projects” will be held on Tuesday 23 June 2026 at 12:00-13.30 CEST.
Adaptation is one of the pillars of climate change policy. Nonetheless, given its multidimensional and context specific nature it is also an elusive concept whose systematic assessment is challenging. Problems are amplified when we try a macroeconomic evaluation of adaptation actions. A countless and often uncoordinated number of public sector, household and firm measures need to be pooled. But, once aggregated, not only their effectiveness, but also their impact on economic growth, the fiscal system, public budget stability can be substantive. During this webinar, the three EU projects are presenting their findings on the macroeconomics of climate change adaptation contributing to bridge a research gap that still remains largely unaddressed.
INVITED PANELISTS
The Macroeconomics of Adaptation – results fromt eh SPARCCLE project
Johannes Emmerling, CMCC Foundation, SPARCCLE Project
Recent evidence of adaptation action, costs, and macroeconomic implications at the private and public sector level will be presented. We show how private and public sector adaptation across sectors appears in European countries and how it varies across key scenarios.
Climate Change, Economic Resilience and Adaptation Strategy: Implications for Growth, Inequality and Policy
Nicholas Vasilakos, University of East Anglia, CROSSEU Project
Climate change is increasingly recognised as a major economic policy challenge, with far-reaching implications for growth, productivity, livelihoods and social cohesion. This presentation examines how climate-related shocks affect economies through both macroeconomic and distributional channels, and considers the implications for adaptation policy. Drawing on cross-country evidence from more than 140 countries, the analysis shows that extreme weather events, including heatwaves, cold spells and other climate extremes, not only reduce economic performance but also exacerbate income inequality, with the greatest impacts often falling on the most vulnerable populations. The presentation also explores the potential of adaptation strategies to reduce these risks by examining how investments in climate-resilient crop varieties, irrigation infrastructure and agricultural mechanisation can strengthen resilience, safeguard productivity and mitigate broader economic losses. The findings highlight that adaptation should be viewed not merely as an environmental response, but as a strategic economic investment capable of enhancing resilience, promoting inclusive growth and reducing long-term climate vulnerability.
Budgets in high water? Fiscal implications of flood adaptation in the United Kingdom
Alexandra Lehner, University of Graz, ACCREU Project
Climate change poses substantial fiscal challenges for governments, driven by increasing damages and adaptation costs. While the benefits of timely, public adaptation are well established, the question of financing these measures remains underexplored. This paper addresses this gap for flood adaptation in the United Kingdom. Using a multi-sectoral CGE model, we analyse how different public financing mechanisms affect fiscal sustainability and economic welfare. Analysed financing mechanisms include (i) shifts in public expenditures maintaining budget neutrality, and (ii) deficit financing via domestic green bonds or (iii) via international bonds. We find that adaptation moderates economic losses and fiscal consequences from flooding, despite considerable upfront investment costs. However, the extent of positive effects depends on the financing mechanism and time horizon, as well as future lending conditions, captured by different interest rates. Domestic bond financing comes at the cost of suppressing private investments, while budget-neutral financing requires cuts in public consumption. Debt financing allows for higher public consumption, but in the long run, this effect is counteracted by interest payments on accumulating public debt. The results demonstrate that, while adaptation improves long-term welfare, fiscal outcomes depend on the chosen financing mechanism and time frame. Improving expectations on future lending conditions can lead to better financing decisions.
MODERATOR
Francesco Bosello, Euro-Mediterranean Centre on Climate Change and Ca’ Foscari University of Venice, ACCREU Project Co-ordinator
REGISTRATION
Register here