Europe is warming faster than any other continent, according to the 2025 European State of the Climate (ESOTC) report, which findings also show a continuing trend of rapid warming across the coldest regions.
The report, published jointly by the European Centre for Medium-Range Weather Forecasts (ECMWF) and the World Meteorological Organization (WMO), signals a shift from climate change as a future threat to a present reality for underwritten assets.
For the insurance and reinsurance sectors, the report’s data on several escalating environmental trends provides a warning for risk assessment, as well as pricing and catastrophe risk modelling.
Florian Pappenberger, Director-General of the European Centre for Medium-Range Weather Forecasts, said: “Europe is the fastest-warming continent, and the impacts are already severe. The 2025 report offers clear, actionable insights to support policy decisions and help the public better understand the changing climate we live in”
According to the report, at least 95% of Europe experienced above-average annual temperatures in 2025, while the area of Europe experiencing winter days with freezing temperatures is shrinking.
A record three-week heatwave affected sub-Arctic Fennoscandia, with temperatures near to and within the Arctic Circle exceeding 30°C.
Glaciers in all European regions saw a net mass loss, with Iceland recording its second-largest glacier loss on record; snow cover was 31% below average; the Greenland Ice Sheet lost 139 gigatonnes (139 billion tonnes) of ice in 2025 alone.
While storms and flooding impacted thousands in Europe, the extreme rainfall and resulting floods were less extensive compared to previous years.
The report notes that every centimetre of sea-level rise increases the population exposed to coastal flooding by an additional 6 million people, suggesting a notable potential rise in property claims in coastal areas.
2025 was also a significant year for wildfires, driven by hot and dry conditions. Wildfires burnt around 1,034,550 hectares, the largest area on record.
While Spain accounted for half of the emissions, record-high wildfire emissions were also seen in the United Kingdom, the Netherlands, and Germany.
Europe experienced one of its driest years for soil moisture since 1992 in 2025, with drought conditions impacting 53% of the continent. This critical water scarcity led to major problems for agriculture and inland shipping.
A significant majority of Europe’s rivers were affected, with 70% registering below-average annual flows, and overall river flows remaining low for 11 months of the year.
The report also revealed that at least 95% of Europe experienced above-average annual temperatures. Southern and eastern Spain recorded up to 50 more days than average with “feels-like” temperatures above 32°C.
According to the findings, annual sea surface temperature for the European region was the highest on record, and 86% of the region experienced at least ‘strong’ marine heatwaves.
The report also touches on the clean energy transition and biodiversity loss. Renewables supplied nearly half (46.4%) of Europe’s electricity in 2025, with solar power reaching a new contribution record of 12.5%.
However, these infrastructures remain highly vulnerable to the extreme weather events described in the report.
Finally, on biodiversity, the report highlighted that it is essential for a sustainable future, but climate change is a major cause of its degradation. Climate change and biodiversity are strongly connected within European policy and frameworks, a relevant connection for re/insurers.
Samantha Burgess, Strategic Lead for Climate at ECMWF, said: “The ESOTC 2025 paints a stark picture: the pace of climate change demands more urgent action. With rising temperatures, and widespread wildfires and drought, the evidence is unequivocal; climate change is not a future threat, it is our present reality. In confronting the impact on biodiversity loss, we need to match the speed of adaptation happening in the clean energy transition and at the same time, ensure robust science continues to underpin our policies and decisions.”
