“Climate Change and Central Banks”

Misa Tanaka presented the Bank of England’s current and future initiatives to meet the climate change challenge.  She explained the role of the Climate Financial Risk Forum in building capacity and sharing best practice across financial regulators and industry, in order to develop the financial sector’s responses to the risks from climate change. In addition, Tanaka explained how both running the Insurance Stress Test and developing the Climate Biennial Exploratory Scenario are aimed at understanding the exposure and resilience of large banks and insurers to climate-related risks. She also reflected upon the recent COVID-induced recession and the role of central banks in mitigating the damage to the economy.