Financial authorities can support these market participants' efforts by making use of their knowledge of financial system stability. Third, in discussing specific measures to address climate-related financial risks, central banks must choose the best option based on their knowledge and the data available at that moment.
In the current situation, the most pressing issue is to engage in an in-depth dialogue with financial institutions about measuring climate-related financial risks and about a framework and methods to manage the risks. Meanwhile, when considering revisions to financial regulations, it is a prerequisite that a framework for measuring risks is prepared and that discussion based on solid evidence becomes possible.