BRUSSELS, 9th November, 2026 (WAM) -- The European Central Bank (ECB) warned today that an extreme water scarcity event could put up to 24% of euro area economic output at risk of loss.
In an article published in its Economic Bulletin, the ECB said research showed that 72% of companies in the euro area were highly dependent on ecosystem services, while nearly 75% of banks' corporate lending went to firms highly dependent on at least one such service.
The ECB estimated that additional green investment of around 3% of EU GDP would be required annually until 2030 to meet the EU's climate objectives, with the public sector expected to cover 20%–25% of total investment needs and private capital financing the remainder.
Citing a Kiel Institute assessment, the ECB said low water levels in the River Rhine in July 2026 reduced Germany's real GDP growth by around 0.2 percentage points in the third quarter.
The ECB also warned of a widening insurance protection gap, noting that less than a quarter of losses caused by natural catastrophes in the EU were insured, with coverage below 5% in several member states.
Extreme climate-related events caused an estimated €900 billion in direct economic losses across the EU between 1981 and 2023, with more than a fifth occurring in the final three years of that period.
The ECB also reported that its carbon dioxide emissions in 2025 were 46% below 2019 levels.