If we do not take action now, significant negative effects may become evident or increase 20 or 30 years later. This is called the "tragedy of the horizon. "17 The second issue is whether central bank actions on climate change relate to their mandate.
Of course, the very existence of central banks is a product of history, and their mandate has evolved over the years as they have responded to market failures.18 In the case of Japan, the Bank's current mandate, as stipulated in the Bank of Japan Act, is to maintain price stability and financial system stability.