Written by: Karim Hammam
The Governor of the Bank of Italy, Fabio Panetta, confirmed that extreme weather phenomena have become a direct threat to global economic and financial stability, noting that these changes caused direct physical damages exceeding $200 billion during 2025, a figure equivalent to more than double the levels recorded in the early 2000s.
Panetta’s statements came in a keynote address titled "Building Resilience to Climate Shocks Today," during the opening of the fifth edition of the Black Swan Conference hosted by the Philippine capital, Manila. The conference discusses how to navigate climate risks amid increasing uncertainty, co-organized by the Bank of Italy, the Bank for International Settlements, the Central Bank of the Philippines, and the Network for Greening the Financial System (NGFS).
The Necessity of Investing in Reducing Risk Exposure
The Governor of the Bank of Italy emphasized that in a world characterized by escalating climate uncertainty, it has become necessary and urgent to improve the understanding, sharing, and management of climate risks with higher efficiency. He also called for injecting more determined and decisive investments to limit exposure to these risks and reduce economic fragility and vulnerability.
Panetta explained that the economic justifications supporting the strengthening of resilience are clear to everyone, pointing out that the repercussions of climate change lead directly to declining productivity, damaging infrastructure and physical capital, as well as imposing noticeable pressures on national budgets and public finances, which highlights the paramount importance of rapid and well-thought-out action.
