European Central Bank Boldly Goes Where Others Fear To Tread - CleanTechnica

The European Central Bank (ECB) is taking a proactive stance on climate change by integrating its economic and financial impacts into monetary policy decisions. Highlighting recent extreme heat waves in Europe, which have caused deaths, disrupted daily life, and damaged agriculture, ECB executive board member Frank Elderson emphasized the direct link between climate-related events and key economic indicators such as inflation and GDP. For instance, the exceptionally hot summer of 2022 contributed to a measurable increase in food-price inflation and a negative impact on Germany’s GDP. The ECB is expanding its focus to include not only climate change but also "nature degradation" as critical factors influencing economic stability and price stability. In Italy, the heat has severely affected agricultural production, with crops like melons, wheat, barley, grapes, and eggplants suffering damage due to high temperatures. This has led to protective measures by farmers and restrictions on outdoor work in several regions, alongside increased hospital admissions related to heat stress. Against this backdrop, the ECB plans to incorporate nature