Pavilion · Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
It’s the economy, stupid! - Water risks and their implications for financial systems and macroeconomic policy
- When (Antalya time)
- Tue 10 Nov 2026 · 18:00–19:00
- Where
- German Climate Pavilion
- Language
- English
- Themes
- Oceans & Water, Climate Finance, Adaptation
The proposition: from water risk recognition to financing its reduction The next water crisis will not stop at the riverbank. Drought, flooding, water pollution and the degradation of water-regulating ecosystems disrupt industrial production, food and energy supply, infrastructure reliability and trade. These losses travel from catchments into corporate revenues and operating costs, collateral values and insurance claims; from there into bank balance sheets, public budgets, inflation, debt sustainability and the cost of capital. The physical impacts are place-specific, but supply-chain and financial contagion may be regional or global. The resulting challenge for COP31 is no longer simply to persuade financial actors that water matters. Water-related risks are increasingly recognized as financially material, yet water remains incompletely represented in macroeconomic analysis, financial supervision and the way infrastructure projects are valued, financed and governed. Globally, the value of water-related risks amounts to 7-9 per cent of global gross national product. In a study of the euro-area financial system, nearly 60% of loans analyzed were exposed to companies with unmet flood-protection needs.
Speakers
- Ingrid-Gabriela HovenManaging DirectorGIZ
- Katie GallusModerator
Collected from German Climate Pavilion
