Spain's wildfires: Counting the economic cost

Wildfires sweeping through southern Europe are causing extensive damage and economic losses, particularly impacting Spain's economy. According to EU data, around 206,000 hectares of forest have burned in Spain this year alone. The European Commission estimates the economic impact of wildfires in Spain in 2022 was approximately €7.1 billion, constituting about 4.5% of the country's GDP. This figure encompasses both direct firefighting costs and the long-term economic repercussions of damaged areas.

Spanish economist Emilio Vizuete Luciano from the University of Barcelona highlights that wildfires often devastate local economies and disrupt trade. Tourism, a key sector for Spain, suffers severely due to the disappearance of tourist activities in affected regions. Climate economist Sarah Meier from ETH Zurich in Switzerland found that regions affected by wildfires experienced a decline in economic growth rate ranging from 0.11% to 0.18%.

This decline worsens when multiple wildfires occur simultaneously, reaching up to 4.5% under severe conditions.

The European Environment Agency (EEA) reports that in 2017, when nearly 990,000 hectares burned across southern Europe, the economic losses reached nearly €10 billion. The EU as a whole loses around 500,000 hectares to wildfires annually. Spain, Greece, and France are the countries most affected by these wildfires. Beyond tourism, the economic damage includes losses in biodiversity, forestry revenues, soil erosion, infrastructure destruction, and firefighting costs.

Spain's approach to wildfire prevention has come under scrutiny. Investment in prevention has decreased since 2009, despite increasing wildfire incidents. While spending on fighting wildfires remains stable, prevention costs have dropped from €364 million in 2009 to €144 million in 2024. Forescat, a Spanish forestry services company, estimates that fighting and extinguishing wildfires costs around €19,000 per hectare. In 2025, nearly 400,000 hectares burned in Spain, resulting in estimated costs of around €7.6 billion.

Maria Inmaculada Marmol Tardaguila of MATS warns that relying solely on firefighting crews is both ecologically reckless and fiscally irresponsible. She advocates for proactive measures, such as removing combustible material from forests, to prevent fires. Unless Spain adopts these preventive strategies, the economic burden will continue to escalate at the same rate as the forest losses.