Panetta urges resilience as climate damage exceeds $200 billion
Climate resilience requires better risk assessment, risk sharing and investment, Bank of Italy Governor Fabio Panetta said on October 19, 2026. Opening Green Swan 2026 in Manila, he cited mounting economic damage from extreme weather.
Three priorities for resilience
Panetta identified three priorities: understanding climate risks better, sharing and absorbing them more effectively, and investing more decisively to reduce exposure and vulnerability.
He said physical climate risks already affect economic and financial conditions, rather than remaining a concern mainly for future generations.
His opening address focused on navigating climate risks amid uncertainty.
The conference was jointly organized by the Bank for International Settlements (BIS), Bangko Sentral ng Pilipinas, the Bank of Italy and the Network for Greening the Financial System (NGFS).
Panetta thanked Governor Remolona and Bangko Sentral ng Pilipinas for hosting the event.
Damage already exceeds $200 billion
Extreme weather caused more than $200 billion in direct damages in 2025, more than double the level of the early 2000s, Panetta said.
Climate change is reducing productivity, destroying physical capital and putting pressure on public finances.
Since the first Green Swan Conference in 2021, he said, evidence of these risks has become more compelling.
Mitigation remains indispensable but cannot eliminate physical climate risk; some damage is already unavoidable.
The speech was published on October 21, 2026.
Mitigation cannot remove every risk
Panetta presents resilience as a complement to mitigation, not a substitute.
Unavoidable physical damage makes risk absorption and lower vulnerability immediate economic concerns.
His priorities connect financial risk management with investment to reduce exposure.