European Central Bank vice-president Luis de Guindos warned that financial risks to eurozone firms from climate change will rise substantially unless policy-makers act.

The ECB published a blog post by de Guindos based on the preliminary results of its new stress test. Climate change represents “a major source of systemic risk”, the stress test found.

The test’s main objective is to assess the exposure of eurozone banks to future climate risks. In order to do so, it analyses the resilience of