Climate Risk Economics
@climateeconomics.bsky.social
Science, analysis, and news around climate change's impacts on the economy, focusing on growth, inflation, investment, companies, consumers #ClimateRisk #ClimateImpacts
According to Morningstar DBRS, total economic losses from the French wildfires could reach €10-15 billion, while insured losses are expected to amount to several billion euros "The movement of wildfire risk toward urban and commercial concentrations is our main concern from a credit perspective."
Record low water levels in Europe's major rivers have curtailed the transport of goods, reduced electricity output and shrunk company earnings, stoking fears about the economic impact of searing heat and erratic rainfall from the changing climate www.reuters.com/business/ene...
Europe's shrinking rivers curb power output, transport and company earnings
Record low water levels in Europe's major rivers have curtailed the transport of goods, reduced electricity output and shrunk company earnings, stoking fears about the economic impact of searing heat...
reuters.com
🌊 Climate change has driven $57bn in flood, storm & drought losses across small island states over 25 years, per new ODI Global research. Hurricane Melissa alone cost Jamaica $12.2bn — 57% of its GDP. www.climateproof.news/p/climate-ad...
“It’s time to make oil giants pay up to repair the climate breakdown they’re driving. Think how many fire and flood defences we could build, or how many solar panels we could install, if big oil paid their fair share in taxes.” www.theguardian.com/business/ng-...
Revealed: major oil firms make $93bn profits amid war and climate crisis
Iran conflict windfall over three months reignites calls for companies ‘cashing in on human misery’ to pay for environmental damage
theguardian.com
Record-Low Rhine River Tests Industry as Dry Spell Persists Unusually low river levels are disrupting trade, curbing nuclear power, and exposing the region's infrastructure vulnerability to droughts, with freight rates rising sharply as barges reduce cargo www.bloomberg.com/news/article...
Record-Low Rhine River Tests Industry as Dry Spell Persists
Disruptions on one of Europe’s most important trade arteries are poised to intensify after the Rhine fell to the lowest on record ahead of the peak summer dry season, with conditions likely to worsen ...
bloomberg.com
Southern Europe is becoming more flammable with the number of summer days primed for extreme fire conditions more than doubling since 1981 Scientists said the "major intensification" of fire-prone weather was driven by climate change www.rfi.fr/en/internati...
Southern Europe 'becoming more flammable' in hotter climate, experts say
Southern Europe is "becoming more flammable" with the number of summer days primed for extreme fire conditions more than doubling since 1981, a new study found on Thursday.
rfi.fr
“Climate Change Is a Core Banking Risk: Having acknowledged that climate change undeniably impacts long-term financial stability, regulators requiring banks to prove that climate-risk [are] consistent determinants of their lending and business decisions” internationalbanker.com/banking/in-2...
In 2026, Climate Change Is a Core Banking Risk
Incorporating climate risk into traditional prudential oversight signifies a significant transformation in global banking. Supervisors and regulators require banks to demonstrate how climate risks inf...
internationalbanker.com
Hungary's Paks nuclear plant is close to complete shutdown due to low water levels on the Danube The river just hit the lowest level in more than a century, amid an ongoing European drought and heatwave
China’s corn, rice and cotton fields are at heightened risk of crop damage as a heat wave sweeps through key agricultural regions in the country’s north and east. High humidity caused by moist monsoonal flows could also raise the risk of crop diseases... www.bloomberg.com/news/article...
China Warns of Crop Risks as Heat Sweeps Agricultural Regions
China’s corn, rice and cotton fields are at heightened risk of crop damage in the coming days as a heat wave sweeps through key agricultural regions in the country’s north and east.
bloomberg.com
Britain could face shortages of certain foods after punishing drought in parts of England Farms were affected by winter floods, making planting extremely difficult, and now in many areas, irrigation is being restricted due to drought... www.theguardian.com/environment/...
Britain could face food shortages as drought continues, farmers warn
Farmers battle to salvage what they can of their crops as heatwave set to continue
theguardian.com
🌍 Financial institutions are flush with climate risk data but short on action: a new Climate Policy Initiative review finds just 33% evaluate and act on physical risk exposure, even though 79% disclose it. The adaptation-action gap is widening. www.climateproof.news/p/climate-ad...
A Banque de France study finds that banks lend less during heatwaves. Acute heat depresses SME credit for up to five years. Chronic warming keeps it down for up to eight. https://greencentralbanking.com/2026/07/07/banks-lend-less-during-heatwaves-banque-de-france-study-finds/
Ships can't move and power plants shut down as drought saps Europe's rivers "a challenge to the region's already stressed economy"... www.wsj.com/world/europe...
Ships Can’t Move and Power Plants Shut Down as Drought Saps Europe’s Rivers
Prolonged dry spell poses a challenge to the region’s already stressed economy.
wsj.com
Europe's wildfire season exposes climate insurance gap: who will pay? www.reuters.com/legal/litiga...
Europe's wildfire season exposes climate insurance gap
The blazes are raising a bigger question: who will pay as climate-driven disasters become more frequent and destructive?
reuters.com
Insurers are turning to catastrophe bonds to pass on historic levels of wildfire risk to the capital markets Wildfire risk is now the fastest-growing category of natural-catastrophe peril globally, with insured losses rising roughly 12% a year www.bloomberg.com/news/article...
Wildfires Fan Record Sales of Catastrophe Bonds to Backstop Risk
Insurers are turning to catastrophe bonds to pass on historic levels of wildfire risk to the capital markets.
bloomberg.com
Rhine water level drops to around record lows, costs for industry rise Shallow water after this summer's heatwave and scarce rainfall means cargo vessels are often only able to sail around 20% loaded on the river, increasing costs for cargo owners. www.reuters.com/business/env...
Rhine water level drops to around record lows, costs for industry rise
Water levels on the Rhine river in Germany fell to near record lows on Friday as a heatwave and prolonged dry weather gripped the region, the country's navigation agency said, though cargo vessels c...
reuters.com
ICYMI: "In 2026, Climate Change Is a Core Banking Risk" Physical climate risks are becoming increasingly visible in loan books as floods, wildfires, droughts and severe storms affect property values, insurance availability and business continuity internationalbanker.com/banking/in-2...
In 2026, Climate Change Is a Core Banking Risk
Incorporating climate risk into traditional prudential oversight signifies a significant transformation in global banking. Supervisors and regulators require banks to demonstrate how climate risks inf...
internationalbanker.com
ICYMI: Climate's Compounding Economic Toll Is Becoming Harder to Ignore "It’s now clear that the costs of climate-related events will grow and that economies aren’t fully prepared. If and when investors look at the same information, asset prices will take a hit"... time.com/article/2026...
Climate's Compounding Economic Toll Is Becoming Harder to Ignore
From heat waves to wildfires, this summer makes clear that climate impacts are happening all at once.
time.com
"Mother of all risks": the scale of climate-related disruption to supply chains is being underestimated as global warming pushes the planet to the brink of environmental tipping points, according to Singapore’s former central bank chief www.bloomberg.com/news/article...
Climate Is ‘Mother of’ Supply Chain Risks, Ex-Bank Chief Says
The scale of climate-related disruption to supply chains is being underestimated as global warming pushes the planet to the brink of environmental tipping points, according to Ravi Menon, Singapore’s ...
bloomberg.com
MSCI CEO Tells Investors Ignoring Climate Risk, ‘You Only Have Yourself to Blame’ and ING’s Chief Economist has called the string of heat waves a “wake-up call,” noting that the thermometer is now a leading indicator for analysts to monitor... www.bloomberg.com/news/article...
MSCI CEO Tells Investors Ignoring Climate Risk, ‘You Only Have Yourself to Blame’
As temperatures continue their relentless rise, most investors are still ignoring the impact of a hotter planet on asset values, according to Henry Fernandez, the chief executive of MSCI Inc.
bloomberg.com
Insurers Are ‘Actively Evaluating’ New Catastrophe Risks as Europe Burns Insurers, reinsurers and brokers are predicting increased premiums and bigger losses. Importantly, they see the latest bouts of extreme heat as a long-term trend... www.insurancejournal.com/news/interna...
Insurers Are 'Actively Evaluating' New Catastrophe Risks as Europe Burns
Europe's insurers are bracing for a new era of catastrophe risk fanned by rising temperatures in the world's fastest-warming continent. Insurers,
insurancejournal.com
‘It’s too fast, too big’: speed of climate crisis is devastating crops, say farmers Drought and extreme heat are killing plants, driving up prices while also making some farms economically unviable www.theguardian.com/environment/...
‘It’s too fast, too big’: speed of climate crisis is devastating crops, say farmers
Drought and extreme heat are killing plants, driving up prices while also making some farms economically unviable
theguardian.com
ECB official warns climate crisis poses growing threat to ‘core financial stability’ “Nature-related risks can pose material economic and financial risks, including through their impacts on credit risk, growth, inflation, and financial instability” www.theguardian.com/business/202...
ECB official warns climate crisis poses growing threat to ‘core financial stability’
Exclusive: As wildfires rage across Europe, Frank Elderson tells the Guardian nature loss poses a growing risk to the global economy
theguardian.com
ICYMI: Faster-than-average warming is costing Italy thousands of lives and billions of euros a year -- @zerocarbona.bsky.social Estimates suggest climate-related losses could reach 1.6% of GDP each year by 2030... zerocarbon-analytics.org/insights/bri...
Faster-than-average warming is costing Italy thousands of lives and billions of euros a year - Zero Carbon Analytics
Italy is particularly vulnerable to extreme heat caused by climate change. Stepping up adaptation and reducing carbon emissions are necessary to reduce future risk.
zerocarbon-analytics.org
Climate change is driving rising heat stress in Japan Japan lost around 1.42 billion potential labour hours to heat exposure in 2024, representing a loss of USD 49 billion. Manufacturing, construction and commerce were the most affected sectors zerocarbon-analytics.org/insights/cli...
Climate change is driving rising heat stress in Japan - Zero Carbon Analytics
Japan faces rising heat risks as climate change drives record temperatures, heatstroke deaths, economic losses and threats to rice and fisheries.
zerocarbon-analytics.org
Climate change is turning parts of Europe into an insurance nightmare The European Central Bank and EU insurance regulators have called on Brussels to set up an EU-level reinsurance scheme and a public natural disaster fund. www.politico.eu/article/clim...
Climate change is turning parts of Europe into an insurance nightmare
Frequent, expensive natural disasters are testing Europe’s ability to protect itself against the cost of global warming.
politico.eu
Wildfires and heatwaves across Europe have already cost more than €3bn this year -- FT analysis The overall impact will be far higher, as insurers, households and businesses are still counting the cost of damage to property and crops and disruption to summer tourism... www.ft.com/content/ef7f...
Home - Financial Times
News, analysis and opinion from the Financial Times on the latest in markets, economics and politics
ft.com
Hungary faces a critical five days as the drying out of the Danube forces the country's sole nuclear power plant to shut for the first time in over four decades, with a new heatwave looming. Large parts of Europe have been hit by prolonged heat and drought... apnews.com/article/neth...
Dry, hot summers are putting Dutch dikes at risk and threatening German river trade
The Netherlands and Germany are suffering the consequences of a European heat wave that has brought dought and sparked devastating wildfires in France, Spain, Portugal, Crete and elsewhere.
apnews.com
Dry, hot summers are putting Dutch dikes at risk and threatening German river trade The Rhine’s water level in Cologne dropped below the record low set in October 2018 “A ship that would normally carry 2,000 to 2,500 metric tons of cargo can now only transport 400-600" apnews.com/article/neth...
Dry, hot summers are putting Dutch dikes at risk and threatening German river trade
The Netherlands and Germany are suffering the consequences of a European heat wave that has brought dought and sparked devastating wildfires in France, Spain, Portugal, Crete and elsewhere.
apnews.com
