South Africa: COVID-19 in Immediate Focus, but Climate Crisis Looms On Reserve Bank Radar

analysis

The South African Reserve Bank's (SARB) Financial Stability Review (FSR) released last week had a section on the climate crisis. The Covid-19 pandemic has the immediate attention of policymakers, but the SARB is not taking its eye off the big picture.

The Covid-19 pandemic is keeping policymakers awake at night. But the challenges raised by the climate crisis are not going away even as global CO2 emissions - linked by most scientists to changing weather patterns - have temporarily declined in 2020 because of the economic havoc wreaked by the pandemic and lockdown measures to contain it.

"The focus of policymakers globally has shifted to Covid-19, but climate change is still one of the biggest threats facing the world today. It is causing long-term variations in temperatures and weather patterns, threatening everything from food security to national infrastructure," the bank's Financial Stability Review (FSR) noted.

The SARB said it was "concerned about two distinct classes of climate risk" - physical risks and those linked to the transition to cleaner, greener forms of energy.

Physical risks include "the increasing frequency and severity of climate change-related events" which the SARB said could inflict substantial losses on banks, insurers and...

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.