The European Union must step up preparations for climate change risks, as a hotter planet threatens everything from farming to financial stability, the European Commission said on Tuesday.

The Commission was responding to a stark report published on Monday by the European Environment Agency (EEA), which urged EU countries to prepare for “catastrophic” risks from worsening climate change.

Climate-caused damages could soar without stronger action to prepare. As sea levels rise, damage from coastal floods could exceed 1 trillion euros ($1.09 trillion) per year in Europe by 2100, the EEA said. For comparison, the EU’s total gross domestic product in 2022 was 15.8 trillion euros.