Ride a Green Swan: central banks grapple with climate risk
The world’s top central bankers agreed on Friday they had a clear role to play in tackling climate change and stepped up calls for banks, companies and others to be required to declare their exposure to the looming crisis.
A three-day “Green Swan” conference – its name a twist on the “black swan” theory on major systemic shocks – brought together heads of the world’s top central banks, policy-makers, academics and business. Here are some of the main takeaways.
GETTING MIGHTY CROWDED
All agreed that efforts had accelerated since former Bank of England governor Mark Carney dared to suggest in a now-famous 2015 speech that climate change could lead to financial crises, stranded assets and a crash in living standards.
The four-year-old Network of Central Banks and Supervisors for Greening the Financial System (NGFS) now has 91 members in territories covering 88% of the world economy and 85%…