If we want to achieve these ambitions, we will need large-scale investments in sustainable energy services, in agriculture, in manufacturing, and so on. And these investments will need to be accompanied by increased efforts to reduce greenhouse gas emissions. The lion’s share of these investments will have to come from the private sector.
Efforts have been carried out in this regard both at the national level and internationally through institutions such as the Financial Stability Board and the International Association of Insurance Supervisors. However, this process is only in its early stages and more work is needed in a number of areas. For instance, climate change scenarios are not typically considered in financial sector stress testing.