In 2024, the world faced an unprecedented wave of natural disasters, from tropical cyclones to severe droughts, leading to the highest number of displacements in 16 years. These events not only exacerbated food crises but also inflicted massive economic losses. Now, more than ever, investing in clean energy, water, and climate services is crucial to overcoming these challenges and fostering resilient communities.
By Eloi Borgne, policy and research officer at ELF
In 2024, the world faced an unprecedented wave of natural disasters, from tropical cyclones to severe droughts, leading to the highest number of displacements in 16 years. These events not only exacerbated food crises but also inflicted massive economic losses. Now, more than ever, investing in clean energy, water, and climate services is crucial to overcoming these challenges and fostering resilient communities. The clear signs of human-induced climate change reached new heights in 2024, epitomised in Europe by the mass flooding of Valencia which also underlined the massive economic and social upheavals caused by extreme weather.
At the same time, climate policies seem to have taken a back seat in terms of political priority. Europe is currently more focused on strengthening its defence capacities and increasing spending on it. Recent election results and policy shifts indicate a growing skepticism towards governments achieving ambitious climate initiatives, reflecting a diminished interest in climate politics across the region. This makes sense, given the increased geopolitical threat of Russia and the wavering in support from the US.
While defence is critical, sidelining climate policy risks will exacerbate the very crises that fuel instability. The choice between either defence or climate action is a false one. A liberal approach, rooted in innovation, equity, and systemic resilience, offers a path to address both priorities.
The risks of climate inaction
Climate change intensifies conflicts by worsening resource scarcity (e.g., water, arable land) and displacing populations, as seen in Afghanistan and the Sahel. When taking the case of Europe specifically, the EU’s 2024 Climate and Security Trend Analysis identifies cascading risks, including migration crises and illicit economies fuelled by environmental collapse. Europe is the fastest warming continent in the world, and climate risks are threatening its energy and food security, ecosystems, infrastructure, water resources, financial stability, and people’s health.
Additionally, the financial costs incurred due to extreme weather events exceeded 487 billion euros, over the last 40 years. Europe’s economy and financial system are increasingly vulnerable to climate risks. An easy example of this is how extreme weather events can drive up insurance premiums, jeopardize assets and mortgages, and escalate government spending and borrowing costs. The EU Solidarity Fund is already under severe strain from recent costly floods and wildfires. As climate impacts worsen, private insurance gaps may widen.
Finally, these world altering changes will affect Europe geopolitically. Firstly, in terms of energy dependence. Russia’s weaponisation of fossil fuels in Ukraine demonstrates the strategic misstep of delaying clean energy transitions. Additionally, the case study of China’s rise in the Green technological industry, demonstrates the past failure of the EU to lead on climate, and the future. This cedes economic and technological influence to rivals investing more heavily in renewables and critical minerals.
Time to step up the efforts
Despite labelling itself a “climate leader,” the EU’s 2024 defence budget hikes contrast with lagging progress on its 2030 emissions targets. Rather than discarding one for the other, the EU should attempt to accelerate the transition, with these defence investments. An example of a missed synergy is highlighted by the EU’s Climate and Defence Roadmap, which acknowledges renewable energy as a security asset, yet funding remains siloed. Moreover, European citizens are aware of the urgency of the current situation, according to the 2022-2023 European Investment Bank (EIB) Climate Survey: “66% of people surveyed in the European Union believe that the Russian invasion of Ukraine and its consequences should accelerate the green transition”. Already, 87% of people surveyed in the European Union feel that their government has been too slow to act in averting climate change. In other words, it is time for action!
Liberal solutions to reclaim the future
The liberal priority to maintain focus on climate solutions is through market-driven decarbonisation. A way to achieve this is to strengthen and link the EU Emissions Trading System (ETS) with CBAM to ensure a single, predictable carbon price across all industrial sectors. This market signal will spur private innovation without micromanaging technologies. Another way could be to expand the EU’s Green Bond Standard to include a simplified issuance regime for small and mid-size enterprises, channelling low-cost capital toward efficiency upgrades and renewable installations.
With a more specific focus on energy and security, a key part of the liberal solution would be to roll back fossil-fuel subsidies via clear, legislated sunset dates. This would allow for markets to re-allocate capital rapidly toward clean alternatives under a level playing field. An additional proposition could be to deploy military microgrids at bases and border installations to guarantee uninterrupted power even if the main grid is compromised. US Department of Defence experiments have shown that solar-plus-battery systems can reliably support mission-critical loads in austere environments. Moreover, upgrading to smart, resilient grids that automatically balance variable renewables, and isolate faults would provide additional security. The European Defence Fund 2025 is funding projects in Europe to develop grid-forming inverters and advanced control software that bolster stability under attack or extreme weather. By implementing such policies, we can smartly combine climate and defence objectives.
In war, a quiet front signals victory, when it comes to climate change, a silent battlefield is our greatest defeat.