To plug the budget gap, the government is currently scrutinising every euro carefully. When it comes to climate change adaptation, however, investing actually helps save money. That's what a recently published study by the Wegener Center at the University of Graz shows. "Our analyses show that protective measures more than pay off in the medium term," summarises lead author Eva Preinfalk.

Droughts, floods, and wildfires put a strain on public finances — and in two ways. On the one hand, the government funds the disaster relief fund that compensates those affected and finances the rebuilding of destroyed infrastructure. On the other hand, the treasury misses out on tax revenues when harvests fail or productivity drops. Austria already invests around 600 million euros annually in climate change adaptation, for instance in flood defences or re-naturalisation projects. "We compared these funds against the average expected damages from the impacts of climate change up to 2050," explains Preinfalk.

More on this at: uni-graz.at