When the climate changes and the world changes, new risks arise in the economy, states the Riksbank in a recent report. According to the new Riksbank Act, the bank is also tasked with keeping track of how climate change affects the economy.
It is partly about price stability, as energy prices can be affected quickly when old carbon dioxide-intensive technology is replaced by new and sustainable energy. In part, it is about purely physical risks when the earth gets warmer. The Riksbank will now analyze the monetary policy strategies that can affect inflation and economic development based on climate change.
But risks can also be created that can threaten financial stability. Therefore, according to the Riksbank, all actors within the financial system must keep track of climate change.
But more reliable data is needed according to the central bank. In addition, according to the report, rules are needed on how the climate risk must be reported, so that investors can make well-founded decisions.