
It has been almost a decade since Mark Carney put climate change on the agenda of central banks and financial authorities with his ‘Breaking the tragedy of the Horizon’ speech made at Lloyds of London Insurers. Carney noted that the catastrophic impacts of climate change would be felt too far into the future for financial institutions or policy makers to shift their decision-making today, but that “once climate change becomes a defining issue for financial stability, it may already be too late”.
Carney’s solution was to leverage the power of the market by helping financial firms better understand the risks they faced from climate change:
“Any efficient market reaction to climate change risks, as well as the technologies and policies to address them, must be founded on transparency of information. A ‘market’ in the transition to a 2-degree world can be built. It has the potential to pull forward adjustment — but only if information is available…”(Carney 2015, 12)












