Climate change and biodiversity loss as systemic threats to financial stability in Finland

Abstract

Climate change and biodiversity loss pose threats to financial stability. The financial sector in Finland seems to have less exposure to emissions-intensive businesses than in many other euro area countries, but the risks surrounding the transition to carbon neutrality can hardly be avoided in Finland either. To date there is relatively little knowledge of the total impact of physical and biodiversity loss risks in Finland. Moreover, the impacts of climate change and biodiversity loss on the whole of Europe and the global economy may also significantly affect financial stability in Finland.