Reserve Bank warns climate change posing increasing risk to financial stability

RBA says it is becoming increasingly important for investors and institutions to actively manage carbon risk

Australia's central bank has delivered a clear warning that climate change is exposing financial institutions and the financial system more broadly to risks that will rise over time if action isn't taken.

The RBA's financial stability review, released Friday, concluded that while climate change is not yet a significant threat to financial stability in Australia, it is becoming increasingly important for investors and institutions to actively manage carbon risk.