Green Central Banking

The National Bank of Georgia has done a lot to help mitigate climate change but could do more to help the country adapt, argues Sneha Yadav. Read more: GreenCB.co/3Yjcy91 #ClimateFinance

Te Pūtea Matua, the Reserve Bank of New Zealand, has released its inaugural climate disclosure setting out its efforts to monitor and manage climate-related risks, as well as its progress in slashing its own operational emissions and tracking those linked to its investments. The report, which covers the 2023/2024 year up until the end of June, focuses on meeting the baseline recommendations of the Network for Greening the Financial System (NGFS) guidance on climate-related disclosure for central banks. However, the RBNZ indicated it wants to produce more ambitious disclosures in the future. “We are kaitiaki (guardians) of New Zealand’s financial ecosystem,” RBNZ assistant governor Simone Robbers said in a statement. “Anything that challenges the stability of the financial system and our economy, such as climate-related risks, is our core business.” Read the full story: GreenCB.co/40gxJLu #ClimateDisclosures #NGFS

#Cop16 is a chance for leaders to recognise the role that financial institutions play in nature resilience, argue Emma O'Donnell, Dr Jimena Alvarez and Dr Nicola Ranger from the University of Oxford. More than half of the world’s total GDP is at least moderately dependent on nature, they say. Yet, almost US$7tn (£5.4tn) per year is spent by governments and the private sector on subsidies and economic activities that have a negative impact on nature – including intensive agriculture and fossil-fuel subsidies. Read the full story: GreenCB.co/4dYdu8u

The National Bank of Georgia has done a lot to help mitigate climate change but could do more to help the country adapt, argues Sneha Yadav. The NBG has laid the groundwork for sustainable finance through initiatives like the sustainable finance roadmap and the sustainable finance taxonomy. Despite these advancements, significant challenges remain. Currently, green loans represent less than 1% of total bank lending in Georgia, highlighting the need for broader adoption of the sustainable finance taxonomy by Georgian banks, says Yadav. Read more: GreenCB.co/3Yjcy91 #ClimateFinance

The time has come for the European Central Bank to consider Green TLTROs, say Aleksandar Simić and Stanislas Jourdan from the Sustainable Finance Lab. Green TLTROs (Targeted Longer-Term Refinancing Operations) are targeted loans that incentivise banks to finance environmentally sustainable projects. For years, the ECB has resisted such a policy citing limited access to data and the need to prioritise inflation control. But with the introduction of the EU’s taxonomy and the ECB having cut interest rates in June, September, and once again in October, now would be an ideal time to introduce Green TLTROs, say Simić and Jourdan. Read more: GreenCB.co/4e2bbkB #TLTROs #ECB #inflation #ClimateChange

Climate change poses a growing threat to global price stability, requiring financial regulators to prepare for an increasingly uncertain economic future, according to a new Network for Greening the Financial System (NGFS) study titled “Acute Physical Impacts From Climate Change and Monetary Policy”. Read more: GreenCB.co/3BQGIZm #ClimateRisk #PriceStability

#GreenCentralBanking roundup: 🇰🇪 Kenya’s green banking reforms gather pace with enhanced climate disclosure framework 🇪🇺 European banks warned of substantial litigation risk tied to East African pipeline 🇮🇶 Iraq launches green roadmap alongside wider banking reforms And more 👇 GreenCB.co/3NsigjL

We're partnering with Climate Bonds Initiative for #ClimateBondsConnect24 London Global Conference. The conference is taking place in London in-person and online on 24th October. If you'd like to attend, register your interest using the link below!

The European Central Bank shouldn’t rule out different ways for encouraging investment in climate finance if such instruments are equally effective at reaching the central bank’s primary price stability objective, executive board member Frank Elderson said in remarks made at the Institute of International and European Affairs. Answering a question about the possibility of dual interest rates posed by Green Central Banking during the online event, Elderson said that while the EU was in a phase where such an instrument was unlikely to be used, “if in the future we were to devise new instruments, I think it is highly unlikely that we will not take climate aspects into account”.  Although the ECB does not make climate policy, it does have a secondary mandate of taking into account EU economic policies, including those related to climate change, he added. Read more: GreenCB.co/3A1ZPiM #ECBMandate #ClimateChange

We're excited to partner with Beyond Bretton Woods for the new Paradigm Shift webinar series. The first session - taking place on 23rd October - asks, can the Bridgetown Initiative bridge the global finance stalemate? See more details below.