ECB's Schnabel: Climate change is an existential threat with large downside tail risks.

<ul><li>Climate-related and environmental risks (C&amp;E risks) are now an important focal point for supervisors</li><li>Climate change constitutes an existential threat, implying large downside tail risks.</li><li> Dealing with financial risks is the core of prudential supervision </li><li>Physical climate risks tend to be correlated globally</li><li>The economic consequences of physical climate risks could be mitigated by closing the large climate insurance protection gap.</li><li>In the EU, only a quarter of losses caused by climate-related catastrophes are insured</li></ul>

This article was written by Adam Button at www.forexlive.com.