EUROPE — Climate change has large economic costs for society. An important effect is the disruption of natural resource supply by climate-mediated disturbances such as wildfires, pest outbreaks and storms. Here we show that disturbance-induced losses for Europe’s timber-based forestry could increase from the current €115 billion to €247 billion under severe climate change. This would diminish the timber value of Europe’s forests by up to 42% and reduce the current gross value added of the forestry sector by up to 15%. Central Europe emerges as a continental hotspot of disturbance costs, with projected future costs of up to €19,885 per hectare. Simultaneous climate-related increases in forest productivity could offset future economic losses from disturbances in Northern and Central Europe but not in Southern Europe. We find high disturbance-related cost of unmitigated warming, highlighting that climate change adaptation in forestry is not only an ecological but also an economic imperative.