Climate change is not in the Bank of Canada's mandate. Climate change is already a force, and it's only going to become a bigger force on the economy.
Our mandate is to control inflation, and in order to do that we're going to have to understand the effects of climate change. There are two kinds of effects. There are the physical effects. I think those are what people are seeing—the experiences, whether forest fires or floods or extreme storms. Those are disrupting people's lives. They're disrupting economic activity, and we need to understand how that affects the economy.
Then there's the transition. We're going to transition to net-zero emissions. That's going to affect almost every sector of the Canadian economy. You're going to have to see large investments in more renewable types of energy. That's a big transition that's going to have a variety of effects. It's going to add new costs and it's going to create new opportunities, so again we need to understand how those things are going to affect the economy and what the implications are for inflation. We're really just at the very beginning of that, but climate change policy is very much in the hands of governments, which is where it should be.