The EU is at “higher and higher” risk of systemic financial shocks from climate change, the head of Europe’s environment agency has warned, as research showed the continent should prepare for temperatures at least 3C warmer than pre-industrial times by 2050.
“This is a wake-up call for the financial industry and the insurance industry,” executive director of the European Environment Agency Leena Ylä-Mononen told the Financial Times.
“It’s not that we face a major financial shock tomorrow but it is accumulating,” she said. “If we start talking about major investments in general into our infrastructure or if we make wrong choices in investing in the way we are constructing our society . . . the risks are getting higher and higher.”
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