Climate Change Impact on Economy

Floods, droughts and wildfires last year were just a preview of what is to come.

A hotter climate and nature loss are changing our economy and our financial system.

At the ECB we must understand this change to ensure financial stability

and to fulfill our price stability mandate.

With our new climate and nature plan,

we focus on the following three things.

First, the green transition.

Second, the growing physical impact of climate change.

And third, the risks from nature loss and degradation.

We will study the impact on the economy and the financial system.

This will help us improve our own models.