Q&A: New York Fed’s Stiroh on climate change and Covid

Co-chair of Basel task force discusses possible supervisory approaches to climate risk

Kevin Stiroh: “We’re in the process of building a framework for understanding climate risk transmission channels”

Photo: Courtesy of the Federal Reserve Bank of New York

The coronavirus pandemic had the potential to push climate risk cleanly off the global regulatory agenda, much as the financial crisis had done more than a decade earlier. Instead, central bankers have doubled down on multilateral plans since March, treating the economic wreckage of the virus as a warning of the kind of shocks that will occur with alarming frequency due to climate change.

In May