Future Forum | Bank of England

Climate change: why it matters to the Bank of England

by
Future Forum
Future Forum | 3 months ago | in Bank to the future

 

The environment, the global economy and climate change

The economy and the environment are closely entwined. Many economic activities have an environmental impact. Burning coal, oil and gas can contribute to climate change, while waste from factories can pollute our land, rivers and sea.

The environment can affect the global economy too. For example, the floods in Thailand in 2011 resulted in over $45 billion of economic losses. More positively, at the other side of the globe, the mangrove forests in Mexico provide storm protection and give support for fisheries and eco-tourism. These benefits have been estimated at $70 billion in financial terms.

Climate change is therefore a central issue to consider and is widely seen as one of the biggest threats to a sustainable future. The steady rise in human activity – and the subsequent greenhouse gas emissions – witnessed since the industrial revolution has already had a considerable and measurable impact on our planet.

Scientists estimate that global temperatures have risen by around 1°C since 1850.  This figure could exceed 4°C by the end of this century if no action to limit emissions is taken.

Read more about Climate Change and the Bank of England in our Knowledge Bank Guide

https://edu.bankofengland.co.uk/knowledgebank/climate-change-why-it-matters-to-the-bank-of-england/

edited on Oct 31, 2018 by Future Forum

Ramblingsofabard 3 months ago

Definitely an important area - economy and environment are entwined. A popular quote on social media “we are the first generation to know the damage we are doing to the environment and we are the last generation that can do something about it”

Shelley (BoE Moderator) 3 months ago

Thank you for your comments!

Ramblingsofabard 3 months ago

A bit old dev economics paper, but quite interesting way of using technology to combat deforestation http://econ.lse.ac.uk/staff/rburgess/wp/polit...tiontropics.pdf

Amy Buckingham 2 months ago

This idea has been advanced to the next phase

june gibson 2 months ago

Even as the higher echelons of each country discuss environmental concerns, new ways of despoiling the earth are in progress or about to be. People are producing more plastic gizmos, rocket ships are launched....etc. All needless activity - perhaps commercially desirable for those who make money from it -must be stopped.
How do you think this can happen?

Shelley (BoE Moderator) 2 months ago

Thank you for taking part in the conversation and that is a very good question. I'd be interested in others thoughts.

Amy Buckingham 1 month ago

This idea has been advanced to the current phase

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