WELLINGTON, Oct. 28 (Xinhua) -- Addressing the risks of climate change requires broad transformational change, New Zealand Reserve Bank Governor Adrian Orr said on Wednesday.
In a speech delivered at the Pacific Ocean Pacific Climate Conference, Orr reflected on the need for transformational change, as well as a collective and urgent response to climate risks.
"There's a lot to do and we are late in leaving port. Climate change is a risk that requires a collective response. Grounding a response in our collective knowledge, data and expertise will strengthen and compound the effects of our actions," Orr said.
Like many other central banks and regulators, the Reserve Bank sees climate change as a key risk to the financial stability underpinning the economy, he said.
"Assessing material risks to banks and insurers, and the financial system as an ecosystem, is our core business. Climate sits firmly within those responsibilities," Orr said.
Risks from climate change to financial stability include the impact of droughts and rising sea levels on asset valuations such as farms and houses. There are also risks associated with the transition to a low carbon economy, such as changing investor appetite and consumer demand, according to Orr.
He highlighted the importance of connection in driving transformational change. He noted the challenges that the Pacific faces in confronting climate change and emphasized the resilience of Pacific nations. Enditem