ECB Executive Board Member Elderson Highlights Economic Risks From Biodiversity Loss
Frank Elderson warned that failing to protect natural capital poses significant risks to euro area economic stability, growth, and long-term inflation outlooks.
By Orion Desk
European Central Bank board member Frank Elderson stated that environmental degradation is no longer a peripheral concern but a fundamental economic threat. He noted that 72% of euro area companies and 75% of corporate lending are highly dependent on ecosystem services, warning that current rates of natural capital depletion directly endanger future productivity and financial stability.
The speech highlighted that risks from water scarcity, flooding, and pollution already impact major European industries and supply chains. Investors should monitor how these environmental dependencies influence the ECB's broader assessment of systemic economic resilience and the long-term inflationary pressures resulting from climate and nature-related disruptions.
Originally published by European Central Bank
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