It is therefore within the mandate of central banks to prevent risks to price stability, and, along with bank and insurance companies’ supervisors, to ensure that the financial system is resilient to these risks; this urgently needs to be translated into concrete measures, both on monetary policy and supervisory fronts.
Although the main responsibilities remain with the governments, with their tax subsidies and investment policies, central banks can undertake an active role in tackling climate change. Central banks have already started considering how the physical and transition impact of climate change can be included in macroeconomic forecasting and financial-stability monitoring.