The European Union will create a “climate change insurance alliance” to increase coverage for extreme weather-related events, European Commission President Ursula von der Leyen said on Wednesday, as the summer of 2026 was one of the driest in recent years.

“This was the hottest summer ever recorded, but probably the coldest of the years to come,” Von der Leyen said in her State of the Union address to the European Parliament in plenary session in Strasbourg.

She stressed that “the science is clear” and that Europe is warming at twice the global rate. “Of course, the transition is complex and we will have to adapt along the way. But there is no doubt. Europe can, must and will stay the course on its climate targets,” she assured MEPs.

According to EU data, only a quarter of climate-related economic losses in the bloc are insured, and this new insurance plan will address the issue.

“Far too often, national budgets become the emergency insurer. We must take action to close this gap,” Von der Leyen said.

“We need to dramatically step up our level of preparedness,” she added.

She also put forward other proposals, such as a climate resilience strategy, due to be presented in October, on how Europe’s 100 highest-risk territories can be managed.

In addition, a heatwave plan aims to improve early warning systems, while an EU water plan is intended to improve the management of the risk posed by increasing drought.

Brussels is also calling on firefighters with extensive experience to make proposals for better fire management, including so that the EU can form its own firefighting fleet.

Source: AGERPRES