Climate Risk and Economic Stability: Implications for Households and Financial Markets

Climate change is a reality that increasingly affects life quality and can also threaten the financial system. This impact touches access to credit for homes and workplaces, and savings for citizens. This concern stems from reports on climate risks prepared by the Bank of Spain, the National Securities Market Commission (CNMV), and the General Directorate of Insurance, along with conclusions drawn by EL PERIÓDICO of the Prensa Ibérica group. The findings warn that climate change can disrupt markets: mutual funds may lose an average of 5.7% in assets in just three years, while pension funds could see an 8.2% rise in costs in the same period.