ECB Says Water Is Top Nature-Related Risk to European Economy

Water has emerged as the single biggest nature-related risk to euro area economy, according to the European Central Bank and researchers at the University of Oxford.

Surface water scarcity alone puts almost 15% of the euro area’s economic output at risk, Frank Elderson, a member of the ECB’s Executive Board, said on Thursday. Agriculture is the most exposed sector because it would suffer the largest proportional output losses from a decline in surface water, he said. He also pointed to risks associated with water pollution, as well as flooding.

The ECB is trying to get a better sense of ...