“The negative impact of climate change on activity and real estate prices, for example, could lead to a slight drop in bank solvency ratios,” explained Mr. De Cos, who was speaking at a conference on “the macro impact -economics of climate change”.
“Climate change is one of the major challenges facing economies and which impacts the macro-economy and financial stability,” noted Mr. De Cos, during this meeting, co-organized by Bank Al Maghrib and the Central Bank of Spain, emphasizing the role that Central Banks can play through the implementation of monetary policies.
Noting that the fight against climate change and the green transition represent one of the biggest challenges facing society, the Spanish official considered that the transition to a low-emission economy involves significant risks, hence the imperative to ‘a well-planned transition with a high level of international cooperation.
Thus, he demonstrated, during his presentation, the effects of drought and extreme heat waves on economies.
“Analysis carried out by the Central Bank of Spain reveals that after a drought or extreme heat wave, the economy experiences a deceleration, leading to higher inflation and a fall in property prices,” he said. -he explained.
Thus, he continued, the impact on annual real GDP growth could reach -1.3 percentage points, accompanied by a 4.2% fall in housing prices and an increase of 1 .5 percentage point of inflation, adding that the most affected sectors in terms of gross value added are construction, mining, forestry and fishing, as well as transport-related sectors.
This conference took place in the presence of the Minister of Equipment and Water, Nizar Baraka, the Minister of Energy Transition and Sustainable Development, Leila Benali, the President of the Economic, Social and Environmental Council, Ahmed Reda Chami, the Spanish Ambassador to Morocco, Ricardo Díez-Hochleitner, as well as representatives of the Moroccan banking and financial sectors.