Mark Carney: A transition in thinking and action

Remarks by Mr Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, at the International Climate Risk Conference for Supervisors, The Netherlands Bank, Amsterdam, 6 April 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
20 April 2018

It is a great pleasure to be here in Amsterdam, at the International Climate Risk Conference for Supervisors, jointly organised by the De Nederlandsche Bank, the Banque de France and the Bank of England.  

In my remarks, I will take stock of the progress made in addressing climate-related financial risks since the Paris Agreement of late 2015.  In particular, I will consider how far there has been a transition in thinking and action.

As we've heard today, the thinking has coalesced around three channels through which climate risk affects financial stability:

  • the physical risks that arise from the increased frequency and severity of climate- and weather-related events that damage property and disrupt trade;
  • the liability risks stemming from parties who have suffered loss from the effects of climate change seeking compensation from those they hold responsible; and
  • the transition risks that can arise through a sudden and disorderly adjustment to a low carbon economy.