For example, if people with large debts are now feeling overburdened then any increase in their savings will typically reduce the aggregate level of household debt. Many of the most indebted households are already quite cash-constrained.
II: How & why Finance is involved Since the publication of the NGFS progress report last October, it’s no longer a question of asking why we must get involved. Climate-related risks are a source of financial risk. That is why it falls squarely within the mandates of central banks and supervisors to ensure the financial system can withstand these risks.