To be honest, when you think of central banks, “innovation” might not exactly be the first word that springs to mind. Instead, your first thought might – hopefully – be “stability”. But take it from me: stability and innovation are not mutually exclusive. In fact, they go hand in hand. Technological progress has always shaped the tasks and activities of central banks.
Yet, the character and severity of the impact from climate extremes depend not only on the extremes themselves, but also on exposure and vulnerability3. Therefore, apart from mitigating, we also need to manage risks and adapt to the changing climate. Traditional environmental problems have been dealt with only locally4.