With the number of natural disasters increasing, the European Union needs to protect its global supply chains from the effects of the climate crisis. In a working paper published on Friday 19 September, the Bruegel think-tank stresses that “[climate] shocks are not confined to the regions where physical damage occurs”, but extend to international trade and supply networks, exacerbating their economic effects.
The authors point out that the 2011 floods in Thailand - which led to...