Well, this is a sensitive topic, so I'll leave it up to those interested to check this out from the Reserve Bank of New Zealand:
It's a speech from RBNZ Governor Orr.
The relevance to the financial system and central banks as a part of that is best summarised in this from Orr:
- The last few months have had no shortage of extreme weather linked to climate change across the globe, with record beating temperatures and droughts. Here in New Zealand, last year set a new record for weather-related insurance payments, and this year is on pace to break the record.
- Assessing material risks to banks and insurers, and the financial system as an ecosystem, is our core business. Financial stability is best maintained when all relevant risks are identified, priced, and allocated to those best able to manage them. To meet our financial stability objective, it’s important for us to take account of the current and future impacts of climate change.
NZD /USD update: