Economic impact of climate change can no longer be denied: Dutch central bank pres.

It is no longer possible to deny the economic impact of climate change, says De Nederlandsche Bank (DNB) President Olaf Sleijpen during a speech in Frankfurt. “We see it, we feel it, we can measure it. This has nothing to do with ideology; this is reality.”

Sleijpen referred to the millions of tons of grain that were lost due to the heat this summer. Nearly 9 million tons of grain were lost in Europe this summer because of the heat, according to Coceral, the European association representing the grain trade. The estimated financial loss was around 2 billion euros.

This could lead to food prices rising even further. Food-price inflation could rise by more than 1 percentage point next year as a result of adverse weather, according to estimates by Oxford Economics cited by Sleijpen.

Heat is also directly reducing worker productivity. Allianz Research estimates that when temperatures are between 30 and 35 degrees Celsius, output per hour falls by around 3% for every additional degree, the DNB president stated, based on estimates made by credit insurer Allianz Trade this week.

Allianz Trade’s newer 2026 analysis estimates that Europe’s heatwaves caused around 113 billion euros in lost economic output across 30 countries. Italy, Germany and France accounted for almost two-thirds of the estimated losses.

“At the European level, an initial estimate suggests that the combined effects could reduce the European Union’s GDP by around 1 percent this year. That is approximately 180 billion euros,” Sleijpen said. The DNB president stressed that these are not yet official estimates, but said they do give an indication of the impact climate change could have on the economy and financial sector.

Sleijpen also warned that more extreme weather could follow as El Niño takes hold, citing the United Nations’ assessment that the phenomenon is interacting with an already exceptionally warm planet.