ECB Highlights Nature Degradation as a Risk to Price and Financial Stability

Frank Elderson, Member of the Executive Board of the ECB, delivered a keynote speech at COP17, emphasizing that nature degradation increasingly impacts price stability, financial stability, and the safety and soundness of banks. He stated that nature-related risks are now a core part of the ECB's work, and banks are expected to identify and manage these risks. Elderson called for accelerated investment in natural capital, noting that annual investment in nature-based solutions needs to more than double to $571 billion by 2030 from $220 billion in 2023.