The European Commission has presented a proposal for a European Climate Resilience Law. Spain has incurred €119.6 billion in losses from extreme events between 1980 and 2024.
According to autonomosyemprendedor.es, climate disasters have become an economic risk for thousands of self-employed individuals and small businesses. A heatwave or a flood can wipe out a shop's stock, disable a workshop's machinery, or leave a bar closed for weeks.
Additionally, there are damages to commercial vehicles, difficulties in receiving goods, and loss of income during repairs. For many businesses, recovering from such an episode is particularly challenging.
The European Commission presented a proposal for a European Climate Resilience Law on October 27 to strengthen preparedness against extreme events. The initiative aims for administrations to anticipate risks and consider climate change when planning infrastructure, investments, and essential services.
According to the European Environment Agency (EEA), extreme weather and climate events caused estimated losses of €822 billion in the European Union between 1980 and 2024. Over €208 billion corresponds to the period 2021-2024 alone.
The European Commission estimates that €119.6 billion in damages were caused by these events in Spain between 1980 and 2024. Its 2026 economic report warns of the need to strengthen risk management and financing to address disasters. The figures include damages of various natures and do not pertain only to businesses.
Self-employed individuals with street-level shops, warehouses, workshops, or commercial vehicles can suffer from floods, fires, and episodes of extreme heat, both directly and due to interruptions in their environment. A shop may take weeks to repair the premises and restock while still paying expenses. A transporter may be left without a vehicle, and a supplier may fail to make deliveries if roads are blocked.
The loss of income, combined with extraordinary expenses, can lead to liquidity problems that are difficult for resource-limited SMEs to absorb.
The Brussels proposal aims to establish a common reference for assessing climate risks and improve the planning of adaptation measures. It includes periodic assessments of threats, more coordination among administrations, and a strategic plan that consolidates national obligations for climate resilience planning.
Furthermore, the initiative includes tools to consult climate projections and identify adaptation solutions. For self-employed individuals, the effect will depend on how it translates into concrete measures, such as planning for flood-prone areas or protecting essential infrastructure, which can reduce interruptions during an emergency.
One of the main economic problems of disasters is that a significant portion of the losses is not covered by private insurance. The European Environment Agency estimates that less than 20% of the losses from extreme events between 1980 and 2024 were privately insured in the countries analyzed. Compensation depends on the coverage contracted, the damages, and the conditions of each policy. In Spain, the role of the Consortium of Insurance Compensation also plays a part.
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