European Central Bank Executive Board member Frank Elderson stated that climate change and nature degradation are increasingly becoming macroeconomic concerns, affecting productivity, growth, inflation, and financial system resilience. He highlighted that Europe experienced its warmest summer on record in 2026, with severe droughts, wildfires, and water scarcity impacting transport, industry, and energy production. Elderson noted that Europe is warming more than twice the global average, and ECB research suggests severe water scarcity alone could put up to 24% of the euro area's economic output at risk. He emphasized that central banks and supervisors must account for these risks within their mandate to maintain price stability and safeguard financial stability.