The world must seize this opportunity to meet the climate challenge

© Scott Goodwill

Right now, we are in the midst of the most severe macroeconomic shock since the second world war: the disruption to our daily lives and subsequent impact on our economies has been enormous.

This crisis offers us a once-in-a-lifetime opportunity to rebuild our economy in order to withstand climate breakdown. As we consider the next stage of recovery, we must look beyond the immediate crisis and think more strategically about how we do it.

The effects of the climate crisis are irreversible, so the severity and frequency of these extreme weather events will only increase. Recognising this risk, the Network for Greening the Financial System (NGFS) – a coalition of 66 central banks, and supervisors – has been working to “green” the financial system to reduce the costly financial risks that these developments create.

The NGFS has continued its work while those on the frontline fight the pandemic, using their financial stability mandates and expertise to ensure climate risks are effectively managed in the financial system.

The challenge is global and will benefit from early action. Source: