Marija Šćulac, Vice President of the Croatian Chamber of Commerce (HGK), stated on HTV's Dnevnik that climate change already carries a concrete economic price and that urgent investment in the modernization of the power grid is necessary.
Climate change is no longer an abstract threat of the future, but a daily reality that seriously endangers the Croatian economy. Marija Šćulac, Vice President of the Croatian Chamber of Commerce (HGK), warned on HTV's main news program that damages from extreme weather conditions in Europe are estimated at as much as 126 billion euros annually, and Croatia, due to the structure of its economy, is among the most exposed countries.
"All these extremely high temperatures, droughts, fires, and other disasters today have a real, concrete economic price," said Šćulac. She emphasized that this is no longer just about environmental protection, but primarily about preserving the country's economic competitiveness.
According to World Bank estimates, Croatia would need to allocate an additional 1.1 percent of its gross domestic product annually for effective climate change adaptation and decarbonization. Although these are significant amounts, the HGK Vice President stresses that the cost of inaction would be significantly higher in the long run.
"When we talk about climate change and climate resilience today, we are not just talking about environmental protection, but primarily about economic competitiveness," said Šćulac.
Almost no sector is spared from the consequences, but some are particularly affected. Agriculture suffers direct damage from droughts and extreme temperatures that reduce yields. In tourism, which is crucial for Croatia's GDP, changes in guest habits are expected.
"Due to high temperatures, guests will change their habits and increasingly avoid coming during the hottest summer months," said Šćulac, adding that the sector will need to extend the season and adapt business models. The construction sector faces the challenge of organizing work on construction sites during extreme heat, while logistics and transport are already feeling disruptions caused by droughts and low water levels.
The key part of the solution lies in the energy sector, which is under increasing pressure from growing consumption. "The energy transition, especially in the context of climate change, has no alternative. However, Croatia must speed up this process dramatically," warned Šćulac. She explained that the transition does not only involve building new solar and wind power plants, but a complete transformation of the energy system.
The central project of this transformation is the modernization and construction of the power grid, which must be capable of accommodating an increasing share of renewable energy sources. In addition, battery storage systems will play an important role, returning surplus energy produced by solar plants to the grid during peak consumption periods.
"The modernization and construction of the power grid is the key, largest, and most important infrastructure project of Croatia's energy transition," concluded Marija Šćulac.
These warnings come amid dramatic global disruptions. Food prices reached their highest level in three and a half years in July, led by rising grain prices. Corn prices are affected by hot and dry weather in the US Corn Belt. England and Wales recorded their driest July on record, and the British harvest is expected to be the weakest in over 40 years.
Geospatial data expert Tom Gray from Southampton demonstrated the speed of change by comparing satellite images of the Winchester, Alresford, and South Downs areas taken on June 26 and July 29 this year. "The difference is just one month. But look at how it looks after we had such a pronounced heatwave, and there was no rain at all this month," said Gray.
In the Bavarian region of Freising, farmer Michael Pellmeyer is recording catastrophic yields. "In our region, there has been practically no precipitation for two months, and that is a catastrophe, especially for grains. We are recording some of the worst grain yields since records began," he said. In South Korea, a heatwave led to a one-third increase in agricultural product prices in just one week.
An additional threat is posed by the El Niño climate phenomenon. Jean-Martin Bauer, Director of the Food Security and Nutrition Analysis Service at the World Food Programme (WFP), warned from Rome that its development could push an additional 49 million people into hunger. "Since June, we have been under the influence of the El Niño phenomenon. These conditions include warming of the Pacific Ocean, which affects the climate worldwide. The last El Niño caused a large increase in hunger," said Bauer. The phenomenon occurs at irregular intervals of 3 to 5 years, and temperatures in parts of the Pacific Ocean can rise by 2 to 8 degrees.
