Bank of England governor Mark Carney said on 29 September that climate change threatens global financial stability and prosperity.
Speaking at a dinner held at Lloyds of London for a gathering of leading insurers in central London, Carney said that there is "still time to act" but that "the window is finite and it's closing."
Insurers have a big interest in climate change as the ninety-six syndicates that underwrite insurance at Lloyd's are the most exposed to disasters such as floods and earthquakes.
"Others will need to learn from Lloyds' example in combining data, technology and expert judgement to measure and manage these risks. The December meetings in Paris (COP21 -United Nations Conference on Climate Change) will work towards plans to curb carbon emissions and encourage the funding of new technologies. But we'll need markets to work alongside them in order to maximise their impact," added Carney.
Carney was keen to emphasise that the current generation needs to act so that future generations are not stuck with the entire cost of dealing with the impact of climate change on the world's financial markets.
"We'll need markets to work alongside them (COP21) in order to maximise their impact. With better information as the foundation we can build that virtuous circle; a better understanding of tomorrow's risks, better pricing for investors, better decision making by policy makers and a smoother transition to a lower carbon economy. By managing what gets measured we can break this tragedy of the horizons," said Carney.