Emmanuel Moulin, Governor of the Banque de France, has warned that persistent heatwaves exert a negative influence on economic growth over the medium term. While acknowledging that short-term economic impacts are complex—influenced by both productivity losses and increased energy consumption—Moulin highlights that extreme climate events, including floods and wildfires, pose systemic risks to the financial sector, bank assets, and insurance markets. Addressing these challenges, the governor advocates for increased investment in decarbonization and climate adaptation strategies, stressing that such efforts must rely on a combination of public and private capital.

Emmanuel Moulin, Governor of the Banque de France, has warned that persistent heatwaves exert a negative influence on economic growth over the medium term. While acknowledging that short-term economic impacts are complex—influenced by both productivity losses and increased energy consumption—Moulin highlights that extreme climate events, including floods and wildfires, pose systemic risks to the financial sector, bank assets, and insurance markets. Addressing these challenges, the governor advocates for increased investment in decarbonization and climate adaptation strategies, stressing that such efforts must rely on a combination of public and private capital.