Sarah Breeden: The shared response to climate change - turning momentum into action

Remarks by Ms Sarah Breeden, Executive Director of International Banks Supervision of the Bank of England, following the second formal meeting of the Green Finance Initiative and Green Finance Committee, London, 19 March 2018.

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

Introduction

Thank you for the opportunity to explain what might otherwise not be obvious - why the Bank of England has an interest in climate change. In addition to outlining our interests, I shall stress how this is a shared challenge - where the private sector and the financial authorities need to work together, respecting our different mandates, if we are to rise to the challenge ahead. And in doing so I will pay tribute to the work you have done here in the China-UK Green Finance Taskforce. Turning momentum into action is imperative. The practical work you are doing in the Taskforce is key to making a real difference.

Climate change, financial risk and the Bank of England's objectives

Climate change, and society's response to it, presents financial risks which impact the Bank's objectives. Those risks arise principally on two dimensions: the physical effects of climate change (for example from more frequent or intense storms); and the impact of changes as we transition to the lower-carbon economy that is consistent with the commitments made by governments in Paris two years ago.