Núñez Ramos: Climate and geopolitics reshape financial stability framework

Soledad Núñez Ramos highlighted that climate change is an increasingly evident economic and financial challenge, not just an environmental one.

Citing Copernicus data, she noted 2025 as the third warmest year on record.

Between 1980 and 2024, extreme weather events caused over €822 billion in economic losses in the EU, with more than a quarter occurring in the last four years.

Annual climate-related losses surged from €8 billion in the 1980s to approximately €45 billion in 2020-2024.

Spain, exposed to water stress and heatwaves, faces direct implications for strategic sectors like agriculture and tourism, impacting corporate balance sheets and asset quality.

While the financial debate initially focused on transition risks, physical risks are now recognized as equally relevant.

Over 90 percent of banks supervised under the Single Supervisory Mechanism acknowledge material exposure to climate and environmental risks, confirming their relevance to business models.

Núñez Ramos underscored the need to reinforce European competitiveness and strategic autonomy amid geopolitical fragmentation.

She argued that sustainability, managed through an orderly transition, can be a source of medium-to-long-term competitiveness.

Conversely, delaying adaptation increases the risk of abrupt adjustments and disorderly value losses.

The energy transition is also critical for national and European security, reducing reliance on imported fossil fuels and mitigating exposure to geopolitical supply shocks.

The financial system must channel savings into productive investment while managing risks.

This requires a clear regulatory framework, consistent methodologies, and reliable, granular information.