
It has been almost a decade since Mark Carney put climate change on the agenda of central banks and financial authorities with his āBreaking the tragedy of the Horizonā 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 āonce climate change becomes a defining issue for financial stability, it may already be tooĀ lateā.
Carneyās solution was to leverage the power of the market by helping financial firms better understand the risks they faced from climateĀ change:
āAny 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 āmarketā in the transition to a 2-degree world can be built. It has the potential to pull forward adjustmentāāābut only if information is availableā¦ā(Carney 2015,Ā 12)