The Bank of Spain published opening remarks by Deputy Governor Soledad Núñez for a high-level conference in Madrid on climate risk and sustainable finance, co-hosted with the Network for Greening the Financial System and London School of Economics centres. The speech framed climate change as an immediate and accelerating driver of economic and financial conditions, and set out priorities for central banks and supervisors to maintain financial-system resilience to climate-related shocks. Núñez highlighted rising physical risks from extreme weather and increasingly complex transition risks shaped by evolving regulation, technology shifts and transparency expectations. She stressed that impacts can be highly localised even when national aggregates appear limited, citing the October 2024 DANA in Valencia as causing severe local losses and some deterioration in credit quality in affected areas while remaining non-systemic due to a relatively small share of exposed credit and mitigating public measures. The remarks emphasised the need for reliable, comparable and sufficiently granular climate data and improved methodologies, alongside better assessment of how physical risks affect future economic activity and evaluation of the credibility of transition plans, with an additional focus on integrating climate considerations into central bank portfolio management in line with mandates.
Bank of Spain 2026-03-25
Bank of Spain Deputy Governor urges stronger climate-risk data and adaptation focus at sustainable finance conference
The Bank of Spain's Deputy Governor Soledad Núñez emphasized climate change as a critical factor influencing economic and financial conditions during a conference in Madrid. She highlighted the rising physical and transition risks, stressing the need for reliable climate data and improved risk assessment methodologies. Núñez also called for integrating climate considerations into central bank portfolio management to enhance financial-system resilience.