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Bank of Canada says Canada must move quickly to tackle climate change risks

OTTAWA, Nov 17 (Reuters) - Climate change will have a profound impact on Canada’s economy and the country must mobilize quickly to mitigate the threat as well as capitalize on opportunities, the Governor of the Bank of Canada said on Tuesday.

Part of that effort includes ensuring the financial system is well positioned to help businesses and households manage risks, both in terms of extreme weather and the transition to low-carbon growth, Tiff Macklem said in remarks to a public policy group.

“Our financial system proved to be resilient during the global financial crisis and has been a key shock absorber so far through the COVID-19 pandemic,” Macklem said. “We need to ensure the financial system is just as resilient in the face of climate change.”

A stable financial system is resilient to the physical and transition risks, he added, noting that those risks are often mispriced and underappreciated.

“We need to position Canada to seize the climate-smart opportunities that consumers, workers and investors are looking for,” he said. “But to mitigate the threat and capitalize on the opportunity, we all need to mobilize. And we need to do it quickly.”

Reporting by Julie Gordon and David Ljunggren