This article discusses research conducted by the Federal Reserve Bank of San Francisco that shows climate change could spark a financial crisis.
Financial risk associated with climate change could undermine the stability of the financial system, according to a research letter by a member of the Federal Reserve Bank of San Francisco.
The financial and economic risks of climate change are already being considered by central banks in other countries and are increasingly a concern for the Federal Reserve Bank, said Glenn D. Rudebusch, a senior policy advisor and executive vice president in the Economic Research Department of the Federal Reserve Bank of San Francisco. His letter was posted on the bank’s website on Monday.
His research highlighted the economic risks associated with climate change, risks that were detailed in the Fourth National Climate Assessment released by U.S. government agencies last year that argued climate inaction would be far costlier to the national economy than climate mitigation.