The experience of recent years leaves no doubt that the incidence and severity of extreme and disruptive weather events are rising sharply, exposing the global economy to greater volatility in output and inflation.
[6] This summer, the European Union – like many other parts of the world – is suffering from one of the most severe droughts on record, with nearly two-thirds of its territory in a state of alert or warning. [7] The pandemic and the war are likely to add to instability in the years to come.