Interconnectedness of financial system ‘amplifies climate risks’
Bank of Canada research says funds’ responses to climate shocks could exacerbate related losses
The risks to the global economy from the climate transition are amplified by the interconnectedness of the financial system, according to research from the Bank of Canada.
The paper, by Gabriel Bruneau, Javier Ojea Ferreiro, Andrew Plummer, Marie-Christine Tremblay and Aidan Witts, was published on December 20. It states that although the transition to net zero poses only limited direct risks to the global economy, the interconnectedness of finance elevates those risks to systemic levels.
The
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