ECB official warns climate crisis poses growing threat to ‘core financial stability’

Exclusive: As wildfires rage, Frank Elderson says more work needed to assess risk from collapse of ecosystem services

A senior policymaker at the European Central Bank has said the climate emergency and the breakdown of nature poses a dramatically growing risk to the global economy.

Frank Elderson, a member of the ECB's executive board, said the eurozone lender of last resort was stepping up its monitoring of the financial risks linked to the destruction of ecosystem services", which are nature-related processes or assets that support human activity.