Ida Wolden Bache: Climate change and central banking – a Nordic perspective

Welcome remarks by Ms Ida Wolden Bache, Deputy Governor of Norges Bank (Central Bank of Norway), at the conference "Climate change and central banking – a Nordic perspective", Oslo, 25 October 2021.

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

Good morning everyone. It is a great pleasure for me to welcome you to Norges Bank and this workshop titled "Climate change and central banking – a Nordic perspective".

Climate change is one of the greatest challenges of our time. The global average temperature is over 1 degree Celsius higher than 100 years ago, and the climate system is changing in unprecedented ways. Increasingly, we see the consequences. This summer we have seen heat waves in many different parts of the world, flooding in Europe and fires in the US and in Siberia. If global warming continues unchecked, the human as well as the economic costs can become enormous.

To reach the goal set by the Paris Agreement to limit global warming to 1.5 degrees Celsius, emissions of carbon and other greenhouse gases must be cut sharply. The transition to a low-carbon economy has gained momentum over the past few years. More and more countries are setting ambitious goals to cut emissions. In Europe, emission allowance prices have risen substantially over the past years. Investment in renewable energy is growing rapidly worldwide. And, in financial markets, more and more investors are demanding sustainable behaviour and disclosure of firms' climate-related risks.