Despite relatively high levels of social protection coverage in the region, significant gaps in adequacy and coverage remain at a time when stronger, more sustainable systems are urgently needed to address the growing impacts of climate change, according to a new International Labour Organization (ILO) report.
The most recent data show that while 85.2 per cent of the population in the region are covered by at least one social protection benefit, 14.8 per cent are still entirely unprotected. Strengthening these social protection systems is essential not only to address immediate pressures such as the cost-of-living crisis, but also to build long-term resilience against the far-reaching and uneven impacts of climate change across the region.
The report Europe and Central Asia Regional Companion to the World Social Protection Report 2024-26 underscores the urgent need to extend coverage, develop robust social protection floors, and ensure adequate benefits. Crucially, this report acknowledges the inextricable link between social protection and climate action.
Climate change is already bringing more frequent and severe floods, droughts, heatwaves and wildfires, which threaten jobs, incomes and livelihoods. Countries with mature social protection systems can repurpose existing programmes quickly, but the increasing scale of shocks demands continuous adaptation. Demographic shift adds further strain, as the ageing of the population highlights the importance of ensuring the adequacy and sustainability of old age pensions, health care and long-term care.
"It is urgent to adapt systems to climate risks, demographic changes, and labour market evolutions. Making institutions stronger and fostering social dialogue are essential to ensure that social protection systems in our regions deliver adequate and resilient support", highlighted Maria do Rosário Palma Ramalho, Ministry of Labour, Solidarity and Social Security of Portugal.
The report provides a comprehensive analysis of the coverage, expenditure, and emerging challenges of social protection systems in the region. It outlines a vision for adapting social protection systems to enhance resilience, support climate adaptation and mitigation efforts as well as facilitate a just transition to a low-carbon economy.
"Social protection systems are vital instruments for addressing climate change, and should be systematically incorporated into climate risk assessments and national and regional climate strategies, promoting sustainable livelihoods, and strengthening disaster response mechanisms. The road ahead is not without challenges and this report offers key insights into overcoming them", said Shahra Razavi, Director of the ILO Universal Social Protection Department.
Across the region, countries are finding ways to adapt. Spain's experience with the 2024 DANA floods showed how existing mechanisms can deliver support to tens of thousands of workers within weeks. Uzbekistan has used social protection benefits to offset the impact of energy price reforms on low-income households. France and the Netherlands are adapting unemployment schemes to address climate-related risks such as extreme heat. Moldova is integrating social protection into its national climate commitments.
These examples point the way forward. Adequacy must be protected through regular indexation of benefits. Social protection systems need to be prepared to expand rapidly in response to shocks, with financing in place. Social protection must be available for workers in all types of employment, whether working in agriculture or on digital platforms, and climate-responsive provisions should be mainstreamed into social protection and labour market policies.
Based on examples from different countries and regional policies, the report calls for adequate public expenditure on social protection, strengthened tax systems and innovative financing solutions to expand fiscal space. It also emphasizes the importance of investing in the administration and management of schemes to ensure quality services at the local level and foster regional and global knowledge exchange and South-South collaboration.
"As we move forward, we must be guided by the principle of leaving no one behind. Solid social protection policies will be vital to ensure that transitions in the Europe and Central Asia region are fair, resilient, and just, while driving progress towards our global commitments", said Beate Andrees, ILO Assistant Director-General and Regional Director for Europe and Central Asia.
The report issues a clarion call for policymakers, social partners, other stakeholders, and communities to come together and forge a path toward a more equitable and sustainable future.
Read the full report here.
