- The European Parliament and Commission are negotiating stronger carbon market controls amid concerns over fuel bill increases.
- The European Commission proposed an overhaul of the EU's flagship carbon market.
- Commissioner Jessika Roswall proposes a major overhaul of the EU's climate rulebook, pushing back against ambitious climate packages.
- Climate chief based in Brussels issues warnings, while the European Commission maintains its presence in the city.
ECB Chief and BlackRock Executive Warn of Chronic Climate Risk to Financial Stability
What happened
Irene Heemskerk, head of the Climate Change Centre at the European Central Bank, stated that a pattern is emerging where the cumulative impact of extreme weather shocks constitutes its own risk category. This chronic impact can lead to value chain disruptions and affect productivity. The warnings align with those recently issued by an executive at BlackRock Inc., noting that these chronic risks are not being priced into markets.
From insurancejournal.com
Why it matters
The phenomenon involves recurring financial and economic losses caused by acute weather events such as floods, wildfires, or droughts. Economists have already warned that Europe's gross domestic product may suffer a blow this year due to the fallout of extreme weather fueled by climate change. The implications for asset valuations and policymaking are considerable.
Climate chief based in Brussels issues warnings, while the European Commission maintains its presence in the city.
From insurancejournal.com
Who's involved
- EuropeGeopolitical state facing potential productivity and GDP impacts from climate change.
- European Central BankCentral bank whose top climate official issued warnings regarding chronic climate risk.
- BlackRockMultinational investment management corporation whose executive issued a similar climate risk warning.