Lagarde urges Europe to strengthen climate and energy defenses

Outgoing ECB President Christine Lagarde urged Europe to prepare for climate risks after summer heat, droughts and wildfires exposed weaknesses in its economy and energy system.

Ahead of next week’s COP31 summit in Antalya, Türkiye, she said extreme weather is likely to become more common as the climate warms.

She called for a public-private scheme to insure against climate disasters, noting that only a quarter of Europe’s catastrophe losses have historically been insured.

Lagarde also urged investment in power grids and storage, which can help move solar power to the evening hours when heat can strain electricity supplies.

She said companies with their own generators and batteries should connect to the grid faster so they can help during periods of high demand.

Much of the investment would need to come from private businesses, and she did not say the ECB would finance it.

Lagarde is due to leave her post on Feb.

7, while the EU plans to use COP31 to seek agreement on emissions-cutting measures.