Our next steps will be to publish further technical documents: - a guide for supervisors on how to supervise climate-related risk - a guide on Environmental Risk analysis for the sector - and research on whether there is evidence for a green-brown differential including development of high-level scenarios for supervisors and central bankers We recognise that the challenges we face are unprecedented, urgent and analytically difficult.
The stakes are undoubtedly high, but the commitment of all stakeholders in the financial system to act together on these recommendations will help – as Mark Carney from the Bank of England put it - avoid a climate-driven “Minsky moment”. We need to be at the point where central banks and supervisors see scenario analysis and stress testing of these risks as a given.