Weathering the storm: climateflation & fossilflation in Belgium
Posted on June, 13 2025
A newly commissioned study by WWF-Belgium reveals the growing economic impact of climate change and fossil fuel dependence, and highlights how extreme weather, rising prices, and energy insecurity are deeply connected. It calls for urgent investment in renewables, fossil fuel subsidy reform, and greener financial policies to protect both the economy and the environment.
A new study commissioned by WWF-Belgium and conducted by the Institute for Environmental Studies at Vrije Universiteit Amsterdam highlights the growing financial risks of climate change and continued fossil fuel reliance. The analysis underscores that climate change is no longer solely an environmental concern—it is a systemic economic and financial risk.
The report draws clear connections between extreme weather events, inflationary pressures, and fossil fuel dependency. Belgium’s 2021 floods, which caused 41 deaths and over €2 billion in damages, exemplify how climate-related shocks are disrupting economies and straining public finances.
Key findings emphasize that issues such as inflation, energy security, climate policy, and biodiversity loss must be addressed through integrated financial strategies. Concepts like “fossilflation” and “climateflation” are already material, affecting households, businesses, and national budgets across the EU.
The study calls for urgent financial policy reforms: phasing out fossil fuel subsidies, scaling up investments in renewable energy, decarbonizing key sectors, and aligning fiscal and monetary frameworks to support sustainable infrastructure and resilient economic growth.
Greening the financial system is not optional—it’s essential for long-term economic stability.
The report draws clear connections between extreme weather events, inflationary pressures, and fossil fuel dependency. Belgium’s 2021 floods, which caused 41 deaths and over €2 billion in damages, exemplify how climate-related shocks are disrupting economies and straining public finances.
Key findings emphasize that issues such as inflation, energy security, climate policy, and biodiversity loss must be addressed through integrated financial strategies. Concepts like “fossilflation” and “climateflation” are already material, affecting households, businesses, and national budgets across the EU.
The study calls for urgent financial policy reforms: phasing out fossil fuel subsidies, scaling up investments in renewable energy, decarbonizing key sectors, and aligning fiscal and monetary frameworks to support sustainable infrastructure and resilient economic growth.
Greening the financial system is not optional—it’s essential for long-term economic stability.
cranes at seaport
© Freepik
cranes at seaport
© Freepik