Bundesbank interview warns climate change raises prices

The Deutsche Bundesbank, through an interview with Sabine Mauderer, said climate change can raise prices and threaten financial stability. - Mauderer said the Bundesbank uses climate scenarios to assess risks to inflation, output, banks, insurers, and investors, including effects on food, energy, and water-dependent sectors.

• She cited examples such as EU inflation rising by up to 0.5 percentage points in a favorable scenario and up to 0.6 percentage points in a severe scenario, with EU output falling by up to 4.8%; she also mentioned 2025 global climate damages of $224 billion, of which $108 billion were insured.