Reserve Bank and Climate Change
Climate change will have a significant effect on New Zealand’s economy and financial system. The Reserve Bank has a strong interest in climate change, as understanding, quantifying and managing major risks is critical to many of its core functions.
It is not for financial policymakers to drive the transition to a low-carbon economy, nor is it the role of the Reserve Bank to advocate one policy response over another. However, the Reserve Bank seeks to contribute to the Government’s objective of a sustainable, productive and inclusive economy, and to facilitate, where possible, a smooth transition to a low carbon economy, while ensuring that this transition does not diminish or adversely impact the financial system’s soundness and efficiency.
Our climate change strategy focuses on ways in which the Bank can contribute to efforts to mitigate the effects of climate change. These include managing our own direct impact on the climate, reflecting climate risks within our core functions, and contributing to wider efforts to identify, monitor and manage climate risks within our economy and financial system, and as part of the global central banking and regulatory community.
The strategy focuses initially on expanding our knowledge and understanding of risks, and stocktaking current practice and operations in the financial markets. Further work will be required to fully embed climate risks within our business and operations. The strategy will be reviewed over time.
Climate change strategy
- Reserve Bank Climate Change Strategy, December 2018
Climate change and New Zealand's financial system
- The impact of climate change and New Zealand’s financial system, November 2018
Information from the November 2018 Financial Stability Report
Playing a part globally, and as a leader in the Pacific region, is important both in terms of reinforcing New Zealand’s reputation as a ‘good global citizen’, and in providing us access to the latest thinking around the globe.
- Leading Insurance Supervisors assess insurance sector action on climate risk disclosure - and set action plan for further work in 2019 (PDF 613KB), 21 June 2019
- The Reserve Bank is a member of the Central Banks and Supervisors for Greening the Financial System (NGFS)
- NGFS 1st anniversary and announcement of five new members (PDF 217KB), 12 December 2018
- Watch a video on carbon footprints – Adrian Orr, Governor speaking at the Financial Stability Report media conference, 28 November 2018
- Climate Leaders Coalition Launch briefing - speaking points, Adrian Orr, Governor 12 July 2018
- Watch a video of the Climate Leaders Coalition Launch, 12 July 2018