Overview

The European State of the Climate (ESOTC) is an annual flagship report series produced through the collaboration of the Copernicus Climate Change Service (C3S) and the World Meteorological Organization (WMO). This comprehensive assessment provides a detailed analysis of climate conditions and key events in Europe and the Arctic during the previous year. It covers essential variables from across the Earth system, including temperature, thermal stress, wildfires, clouds, sunshine, and various renewable energy resources. Furthermore, the report examines hydrological components such as precipitation, soil moisture, river flow, and flooding, alongside cryospheric elements like snow, glaciers, the Greenland Ice Sheet, and Arctic sea ice. It also addresses atmospheric drivers, specifically greenhouse gases, and incorporates a dedicated focus on climate policy and its connection to biodiversity.

Purpose

The report exists to provide a reliable, science-based account of the changing climate to inform high-level decision-making and policy development. It is designed to serve as a critical tool for guiding actions that shape a more resilient, sustainable, and stronger future for Europe. By highlighting the reality of rapid warming and the increasing frequency of extreme weather events, the series helps policymakers meet the growing challenges posed to both human populations and natural ecosystems. It also provides essential evidence for monitoring progress toward international agreements, such as the Paris Agreement, and regional frameworks like the European Biodiversity Strategy for 2030.

Methodology

The analysis is the result of a collaborative effort involving around 100 scientists and colleagues across Europe and globally. The assessment is based on the analysis of approximately 45 datasets, reporting on about 45 different climate variables or indices. Data is drawn from diverse sources, including satellite observations, in situ ground stations, and atmospheric transport models. Key datasets utilised include ERA5, ERA5-Land, E-OBS, SYNOP, and CM SAF, provided by the Copernicus Services and partner institutions. The report covers two overlapping domains: the C3S European domain and the WMO Regional Association VI (RA VI), which extends to include Greenland, the South Caucasus, and parts of the Middle East. A standard reference period of 1991–2020 is typically used for calculating climatological averages, providing historical context for the observed anomalies.

Use for finance professionals

Finance professionals can utilise the ESOTC series to quantify physical climate risks and evaluate the long-term sustainability of investments across various sectors. Detailed data on annual river flow, soil moisture, and flood extent are vital for assessing risks to infrastructure, agriculture, and water-intensive industries. The report’s analysis of wildfire emissions and burnt areas provides critical inputs for assessing environmental liabilities and carbon accounting. Furthermore, the evaluation of solar and wind power potential helps inform capital allocation in the renewable energy sector by identifying regions with above-average generation capacity. The integration of biodiversity case studies and policy updates also assists professionals in navigating the evolving regulatory landscape, such as the Nature Restoration Law and the EU Green Deal, which are increasingly relevant for ESG disclosures and natural capital valuation.