The climate crisis must be priority for financial regulators
Central banks around the world are responsible for ensuring economic and financial stability. So why would some minimize perhaps the most significant threat to the future of our society and its financial markets — climate change?
Business headlines in the last few months are full of encouraging stories on climate action. The European Central Bank is increasing its contribution to addressing the climate crisis. President Joe Biden committed to reducing emissions by 50 to 52 percent by 2030, and Treasury Secretary Janet Yellen is leading a regulatory review to examine climate change’s potential risk to America’s financial system. And earlier this year, the U.K.’s HM Treasury announced its principal financial regulators will be required to consider climate change as part of a government-mandated transition to a net zero economy by 2050.
However, as we experience…