Bank of England given dire warning on climate risk

An open letter addressed to the UK’s central bank offers a warning on – and solution to – the “finance-climate doom loop” threatening economic stability.

Climate change poses a “grave and growing threat to the financial system and macroeconomic stability”, wrote think-tanks, academics and the CEO of sustainability-focused bank Triodos in an open letter sent last week to Andrew Bailey, the governor of the Bank of England, and Sam Woods, the CEO of its Prudential Regulation Authority. They called on the monetary institution to take concrete steps to reduce climate-related risk.