ECB Executive Frank Elderson Highlights Climate and Nature Risks as Drivers of Economic Resilience

Frank Elderson, ECB Executive Board member, warned that the record‑warm summer of 2026 in Western Europe, marked by severe droughts, wildfires and water scarcity, has exposed how climate and nature degradation directly impact transport, industry, energy, agriculture and overall economic stability. He argued that these environmental shocks are becoming a systemic macroeconomic risk and must be addressed through integrated green transition policies that strengthen competitiveness, energy security and long‑term prosperity.