OSFI And The Bank Of Canada Publish Final Report On Climate-Change Scenario Analysis Pilot Project

On January 14, 2022, the Bank of Canada ("BoC") and the Office of the Superintendent of Financial Institutions ("OSFI") published Using Scenario Analysis to Assess Climate Transition Risk, the Final Report of the BoC-OSFI Climate Scenario Analysis Pilot (the "Final Pilot Report"). The Final Pilot Report is the culmination of a pilot project launched in November 2020 (the "Pilot") to better understand risks to the Canadian economy and financial system related to the transition to a low-carbon economy, by developing scenarios to analyze the potential exposure of Canada's financial sector in the context of different pathways towards achieving specific climate targets. Two technical papers (Transition Scenarios and Implementation Methods) and the climate scenario data developed for the Pilot were released concurrently with the Final Pilot Report.