Climate change and biodiversity loss: to manage the financial risk, central banks and financial regulators need to treat them as interconnected

The world’s financial authorities — central banks, financial regulators and supervisors — now recognize both climate change and declining biodiversity — the loss of animal and plant species, as well as the degradation of ecosystem diversity and genetic biodiversity within species — as a significant source of systemic financial risks, and they’re developing policies to mitigate their effects. But to make real progress, they need to see the connection between the two problems and take a more proactive approach.

In this article, ICOR member Hugues CHENET speaks about his paper “Biodiversity loss and climate change interactions: financial stability implications for central banks and financial supervisors,” co-authored with Katie KEDWARD and Josh RYAN-COLLINS of University College London,.

Read More.