Bank of Canada identifies climate change as important economic weak spot
OTTAWA — The Bank of Canada is highlighting its expanding concerns about climate change and, for the first time, is listing it among the top weak spots for the economy and the financial system.
The central bank’s financial system health report Thursday included climate change as an important vulnerability, elevating it to a category alongside its long-running worries about household debt and apprehension about the housing market
The assessment is part of the Bank of Canada’s annual review that explores key weaknesses and risks surrounding financial stability.
“Economic activity and the environment are intertwined,” said the bank, which, like its international peers, is starting to make climate-change factors part of its financial stability research.