Moreover, central banks themselves have a genuine interest in understanding climate-related risks: 2 exposure to transition and physical risks can have severe implications for the functioning of the financial system and financial stability. Banking supervisors need to assess the vulnerability of financial institutions to climate risks. Increases in energy prices affect inflation.
Not least, central bank statistics are an integral element of the data infrastructure related to the climate transition. So what are the challenges – and are the current statistical systems fit for purpose? I see three main priorities: • •  •  First, activities that pollute the atmosphere and contribute to climate change need to be measured, priced, and reduced.