For the first time a report quantifies the link between climate risk and Italy’s public finances, showing how climate change could further weaken the country’s already fragile economic growth and worsen debt sustainability. Warming could cost Italy up to 6 percentage points of GDP by the middle of the century and double the refinancing risks of Italian debt. Losses are not distributed evenly across Europe: southern and eastern regions are more exposed, while Italy faces the risk of weaker long-term growth and a more fragile fiscal outlook. […]