New Zealand central bank says working with partners on climate | climate

The Governor of the Reserve Bank of New Zealand, Adrian Orr, says the “climate effects” are already being felt.

New Zealand’s central bank governor Adrian Orr has revealed that the Reserve Bank of New Zealand is working with more than 110 central banks around the world to better understand and respond to climate change.

“As the climate continues to change, well-being and prosperity are harmed. To achieve the Reserve Bank’s goal, it is important that we understand this context,” Orr said Monday during a speech at a conference on climate change and business.

Orr said financial stability is best maintained when all relevant risks are identified, priced and assigned to those who can best manage them.

“Climate effects are here now, and the risks of further effects are there to stay. But we still have a lot under control,” Orr said.

Orr said there had been “no shortage” of extreme weather related to climate change around the world in recent months and that it was important for the central bank to consider the “current and future impacts of climate change” under its mandate. for financial stability.

Orr’s comments come after his predecessor, Graeme Wheeler, earlier this year criticized the central bank governor for focusing on the “extraordinary political issue” of climate change during his tenure.

Under the world’s legislation passed last October, some 200 of New Zealand’s largest financial companies will be required to disclose their emissions and report annually on climate change-related risks to their businesses from next year.

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