This report, the result of a partnership between Cerac and the Federal Planning Bureau, attempts for the first time to estimate the future costs of climate change for Belgium’s public finances.
The study examines two types of economic risks based on potential climate warming scenarios: On the one hand, chronic risks stem from the gradual increase in temperature and precipitation. On the other hand, acute risks refer to natural disasters such as floods, storms, heavy rainfall, etc. The scenarios considered do not take into account possible additional adaptation policies.
In addition to providing estimates for GDP, public debt, and fiscal effort, this report also represents a first contribution towards meeting the new requirements of the EU’s budgetary framework, which invites Member States to provide, as far as possible, a medium- and long-term assessment of the macroeconomic and budgetary impacts of climate change, including potential effects on the contingent liabilities of public finances.