Tokyo, March 24 (Jiji Press)–The Bank of Japan will set up a cross-sectional network within the central bank to step up its response to economic issues related to climate change, informed sources told Jiji Press on Wednesday.
The network will involve a wide range of sections including the Financial System and Bank Examination Department, which is in charge of ensuring financial system stability, the Research and Statistics Department, the International Department and the Monetary Affairs Department, the sources said.
Specifically, the network will examine the risks that climate change poses to financial institutions and markets, the sources said.
The effort is also designed to facilitate research and analysis on the impact of climate change on the Japanese economy, they said.
Central banks in the United States and Europe are getting more involved in global warming issues.
European Central Bank President Christine Lagarde has expressed her eagerness to address climate change through monetary policy, while the U.S. Federal Reserve is planning to set up a committee to deal with risks to the financial system from climate change.
In a related move, the BOJ will hold an international conference on climate change online on Thursday and Friday, joined by central bankers, financial institution officials and academics from around the world. BOJ Governor Haruhiko Kuroda will give a speech to the gathering.