German Parliament Highlights Growing Financial Risks from Climate and Biodiversity Loss
Berlin, Germany – July 9, 2025 – The German Bundestag today released an important document, Drucksache 21/818, titled “Kleine Anfrage Klima- und Biodiversitätsrisiken und eine verzögerte Transformation als Gefahr für das deutsche Finanzsystem” (Minor Inquiry on Climate and Biodiversity Risks and Delayed Transformation as a Danger to the German Financial System). This publication, made available at 10:00 AM, underscores a growing concern within the German parliament regarding the potential systemic threats posed by unaddressed climate change and biodiversity loss to the nation’s financial stability.
The “Kleine Anfrage,” or minor inquiry, is a parliamentary instrument that allows members of the Bundestag to pose questions to the government, seeking clarification and information on specific issues. This particular inquiry, submitted by a group of parliamentarians, aims to thoroughly assess the interconnections between environmental degradation, the pace of the green transformation, and the resilience of the German financial sector.
The core of the inquiry highlights the potential for climate-related risks to manifest in various forms within the financial system. These can include physical risks, such as damage to infrastructure from extreme weather events, leading to insurance claims and disruptions to economic activity. Furthermore, the inquiry likely delves into transition risks, which arise from the shift to a low-carbon economy. This could involve the devaluation of assets in carbon-intensive industries, leading to potential losses for investors and financial institutions.
Equally significant is the focus on biodiversity risks. The inquiry recognizes that the loss of biodiversity and ecosystem services, such as pollination or water purification, can have profound economic consequences. These impacts can ripple through supply chains, affect agricultural productivity, and ultimately influence the profitability and stability of businesses, thereby posing indirect risks to the financial sector.
A key element of the parliamentary concern, as indicated by the title, is the potential danger posed by a “verzögerte Transformation” – a delayed transformation. This suggests that a slow or inadequate response to climate change and biodiversity loss, and a failure to proactively transition towards a sustainable economy, could exacerbate these financial risks. The longer the delay, the more abrupt and disruptive the necessary adjustments might become, increasing the likelihood of financial shocks.
The specific questions posed within Drucksache 21/818 are expected to seek detailed information from the German government on:
- The government’s assessment of the current and future financial impacts of climate and biodiversity risks on the German economy.
- The strategies and measures being implemented to mitigate these risks within the financial sector.
- The effectiveness of current policies in accelerating the necessary transformation towards a sustainable and resilient economy.
- The role of financial regulators and supervisory authorities in ensuring the stability of the financial system in the face of these environmental challenges.
- Potential vulnerabilities within the German banking, insurance, and investment sectors arising from climate and biodiversity-related factors.
The publication of this minor inquiry signifies a proactive and responsible approach by members of the Bundestag to safeguard the long-term economic well-being of Germany. By bringing these critical issues to the forefront, the inquiry serves as a call for a robust and timely response to the interconnected challenges of climate change and biodiversity loss, ensuring the resilience of the nation’s financial system in the face of these evolving global threats. The government’s forthcoming response to these questions will be closely watched by stakeholders across the economic and environmental spectrum.
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Drucksachen published ’21/818: Kleine Anfrage Klima- und Biodiversitätsrisiken und eine verzögerte Transformation als Gefahr für das deutsche Finanzsystem (PDF)’ at 2025-07-09 10:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.