ECB Says Water Is Top Nature-Related Risk to European Economy
An irrigation system waters a field during a drought near Piacenza, Italy, in 2022.
Photographer: Francesca Volpi/BloombergWater has emerged as the single biggest nature-related risk to euro area economy, according to the European Central Bank and researchers at the University of Oxford.
Surface water scarcity alone puts almost 15% of the euro area’s economic output at risk, Frank Elderson, a member of the ECB’s Executive Board, said on Thursday. Agriculture is the most exposed sector because it would suffer the largest proportional output losses from a decline in surface water, he said. He also pointed to risks associated with water pollution, as well as flooding.