Haruhiko Kuroda: Addressing climate-related financial risks -- from a central bank's perspective

Opening remarks by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at the International Research Workshop on Climate-related Financial Risks, hosted by the Financial System and Bank Examination Department, Bank of Japan, 25 March 2021.

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

Central bank speech  | 
26 March 2021


It is a great honor for us to welcome experts from many countries today to the International Research Workshop on Climate-related Financial Risks, hosted by the Bank of Japan's Financial System and Bank Examination Department. On behalf of the organizers, I would like to thank you for your attendance. I wish we could meet face to face, but at the same time, I recognize the benefit of online meetings, as we can join discussions across the world without the burden of travel.

The topic of this workshop is climate-related financial risks, that is, the risks that climate change might destabilize the financial system through a variety of channels. This workshop is the first event held by the Bank of Japan on how climate change interacts with the economy and the financial system. Today, I would like to begin by offering my thoughts on the relationship between climate change and central banks. I will then share my view on climate-related financial risks, and outline the efforts being made by the Bank of Japan. To conclude my remarks, I would like to touch on what we can expect from the discussions at this workshop.

I. Climate Change and Central Banks

It is becoming widely accepted that climate change brings dangers that could have a profound effect on society and the economy around the globe, and that the reduction of greenhouse gas emissions is essential for the sustainable development of civilization.