An estimated €620 billion (£529bn) in additional annual investments, primarily from private funding, will be necessary.
Member States’ budgets will also play a significant role in funding the transition, according to the 2023 Strategic Foresight report.
The EU has committed to spending €578 billion (£493bn), equivalent to at least 30% of its budget, on climate-relevant action from 2021 to 2027.
The report emphasiSes the unknown costs and consequences of the climate and biodiversity crisis, as extreme weather events already lead to significant economic losses.
Enhancing climate resilience across various sectors will require significant resources.
Additionally, the report highlights the potential impact on insurance affordability and public budgets due to increased climate-related risks.
Investing in early warning systems is emphasised as a preventive measure, with every euro invested yielding an average return of €131 (£111) through avoided losses, response costs and societal benefits.