Climate Changed
Dutch Regulator Warns Banks and Insurers to Factor in Climate Change
- Global warming increases chances of costly high-impact storms
- Central bank is working on developing climate stress tests
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Banks, insurers, and other financial institutions must do more to take into account the risks posed by climate change to their business, a Dutch Central Bank study said.
As global warming increases the risk of extreme weather events, regulators are giving more attention to its economic and market implications, with estimates showing that a single high-impact storm could cause damages of as much as €60 billion ($71 billion), according to the report published on Thursday. The Netherlands, which is largely below sea level, runs an inordinate risk of being affected by such events.