On 5 May 2026, the European Central Bank opened its first Climate, Nature and Monetary Policy Conference in Frankfurt. President Christine Lagarde said the ECB has moved from focusing on climate‑risk financial‑stability impacts in 2015 to systematically incorporating climate and nature considerations into monetary policy after a 2021 strategy review. Research presented shows extreme weather can raise food prices by up to 0.7 percentage points in the euro area and depress regional output by about 3 percentage points four years after a drought or flood. The Climate Change Centre has carried out stress tests and included ETS2 in its projections, estimating a 0.2‑percentage‑point inflation effect in 2028. The Network for Greening the Financial System now has over 150 members. Lagarde also highlighted a study linking water‑scarcity events to a 24‑percentage‑point risk to euro‑area output.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
Made by AI. If you spot anything of concern write us at contact@cybach.com. We’ll promptly correct irregularities.