The more carbon is released into the atmosphere, the greater the impacts of climate change will become, and the faster the transition will have to take place. [...] The Bank of Canada and the Office of the Superintendent of Financial Institutions (OFSI) completed a bottom- up climate scenario analysis with six Canadian federally regulated financial institutions, including the two largest banks and insurance providers, and used a disorderly transition to 2 degrees, an orderly transition to 2 degrees, a baseline of 2019 policies, and a 1.5 degree of warming sce. [...] 3.3 Commitment to the idea of market neutrality The principle of ‘market neutrality’ proposes that the market operations of central banks are conducted in a ‘neutral’ way, such that they reflect the market and do not distort the relative prices of assets (Kyriakopoulou, 2021). [...] This approach fails to account for the financial sector’s contribution to the build up of such risks, and therefore ignores the need for financial institutions to phase out the flow of finance to environmentally harmful projects. [...] The historical contributions of countries to climate change considers the cumulative amount of CO2 emissions from the start of the industrial revolution to the present day.
- Pages
- 42
- Published in
- United Kingdom
