The most dramatic and tragic natural phenomenon Spain has seen in recent years were flash floods that killed 237 people in the east of the country in October 2024, centred on the Valencia region.
Spanish meteorological research group Climatoc-Lab described it as “a manifestation of how global warming alters the hydrological cycle”.
The Valencia Chamber of Commerce estimated that the floods caused €4.5bn in direct damage. Thousands of businesses were affected, some literally washed away by the floodwater, while others were able to resume operations after a lengthy recovery.
“It was a disaster, both in terms of the lives lost and the impact on businesses, on workers, employers and ordinary people,” says Laura Llácer Álvarez, manager of the Fepeval federation of industrial parks in the Valencia region.
Spain’s geographical position, along with its climate and topography, make it unusually vulnerable as global temperatures increase. Germanwatch, an independent environmental organisation, ranked Spain the world’s 20th most affected country in its climate risk index for 2024, just behind Nigeria and Mali.
Yet there are those who see an upside for the economy.
“Climate change affects how we produce, how we invest and how we consume,” says Julián Cubero, head of economics of climate change at economic think tank BBVA Research. He points to how heat can act as a drag on economic activity.
“We all work worse when it’s hot,” he says. However, he adds, a greener economy can create new jobs with greater productivity.
“The key is to realise that if we don’t act, growth will slow down, and if it’s handled right it can become an opportunity,” he says.