Reserve Bank to act on climate change risks

Reserve Bank to act on climate change risks | Insurance Business New Zealand

Reserve Bank to act on climate change risks

The Reserve Bank of New Zealand (RBNZ) has published its climate change strategy, in an effort to contribute to the government’s objective of a sustainable, productive and inclusive economy.

The strategy includes monitoring and managing the central banks’ impact on the climate and reflecting climate risks within its core functions. It also includes contributing to wider efforts to identify, monitor and manage climate risks within the economy and financial system, and as part of the global central banking and regulatory community.

RBNZ also announced that it has been welcomed as a member of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The network was set up in December 2017 at the Paris ‘One Planet Summit’ to strengthen the global response required to meet the goals of the Paris agreement.

“Where possible, we want to facilitate a smooth transition to a low carbon economy while ensuring that this does not diminish or adversely impact the soundness and efficiency of the financial system,” RBNZ governor Adrian Orr said.

“Playing our part globally, and as a leader in the Pacific region, is important both in terms of reinforcing New Zealand’s reputation as a ‘good global citizen’, and in providing us access to the latest thinking around the globe,” RBNZ head of department financial system policy and analysis Toby Fiennes added.