Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

BOJ Kuroda warns climate change among biggest challenges facing global economy

Published 10/06/2020, 11:14 PM
Updated 10/06/2020, 11:15 PM
© Reuters. FILE PHOTO: Bank of Japan Governor Haruhiko Kuroda attends a news conference in Tokyo

© Reuters. FILE PHOTO: Bank of Japan Governor Haruhiko Kuroda attends a news conference in Tokyo

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Wednesday climate change is among the biggest challenges facing the global economy, joining a growing debate about how policymakers should address the growth risks posed by global warming.

Kuroda, former head of the Asian Development Bank, said some regions in Asia are particularly vulnerable to the economic consequences of natural disasters resulting from climate change.

"Climate change, how to realise a green economy ... These issues are really huge and I must say the most challenging issues faced by the global economy," Kuroda said in a virtual meeting of the U.S. National Association for Business Economics.

Central banks around the world have recently raised their awareness on the financial and economic risks posed by extreme weather, but the topic is rarely addressed by BOJ policymakers.

The global community must offer aid to smaller island economies vulnerable to rising sea levels, while striving to develop alternative energy and reduce greenhouse gas emissions, said Kuroda.

"These kinds of efforts are needed not only in developed economies, but developing and emerging economies," he said.

The financial sector must also step up efforts to make the banking system more robust and resilient to risks from climate change, Kuroda said.

In a report issued in January, the Bank for International Settlements warned of the potentially huge effects of climate change on the world's financial system.

The European Central Bank said last month it will from next year accept as collateral green bonds with payouts linked to sustainability targets.

The BOJ has in place a lending facility that offers cheap funds to commercial banks that extend loans to businesses with growth potential, including environmentally friendly projects.

© Reuters. FILE PHOTO: Bank of Japan Governor Haruhiko Kuroda attends a news conference in Tokyo

But Kuroda has said the BOJ has no plans, for now, to buy green bonds - a category of fixed-income securities that raise capital for projects with environmental benefits.

Latest comments

There's much more evidence suggesting man is not the cause of the climate changing. The climate changes.. that's what it does. Selective science, selective facts, selective reporting, all contribute to this false narrative. Remember... Experts and scientists also thought the Earth was flat at one time.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.