Last weekend, as wildfires continued to scorch parts of southern Europe, Frank Elderson of the European Central Bank’s Executive Board took to the pages of the Guardian to warn that the "climate and nature crises” now pose a direct threat to "core financial stability” and even "core price stability”. The destruction of ecosystem services, he insisted, is not some "flower-power, tree-hugging exercise” but "core economics”. The ECB, he added, is already deepening its scrutiny of banks’ exposures to nature-related risks, with further analysis due later this year.

This is the same institution that, only 10 days earlier, quietly expanded its "climate factor” in the "Eurosystem collateral framework” to cover non-financial corporate loans. From the end of 2027 at the earliest, loans to companies deemed exposed to "transition shocks” from climate change will face an additional haircut of up to 5%. The July decision and Elderson’s August rhetoric are of a piece: the ECB continues to weaponise climate (and now nature) policy even as the empirical, political and market ground shifts decisively under the alarmist camp.

Posted by: Timothy Birdnow at 09:42 AM | No Comments | Add Comment
Post contains 278 words, total size 2 kb.