Network for Greening the Financial System (NGFS)

I naturally regret the Federal Reserve’s withdrawal from the NGFS, especially given the critical importance of addressing climate-related risks. However, I respect its decision.   Our network does a tremendous job of highlighting the various economic and financial risks posed by climate change. Our expertise is widely used by the G20 and other international forums.   The NGFS pursues a science- and data-based approach, and it is up to our more than 140 members to decide how they use the work of the NGFS, within their respective mandates.   Network for Greening the Financial System (NGFS) Banque de France South African Reserve Bank   #finance #economy #climate #G20 #NGFS #usa #bundesbank #ecb

Pre-Inauguration Day news: the US Federal Reserve Board officially announced yesterday its decision to withdraw from the Network for Greening the Financial System (NGFS). Its press release is here: https://lnkd.in/dbSmeNiQ. The NGFS responded with its own press release: https://lnkd.in/dFehUr36 This is altogether not surprising, considering the Federal Reserve only joined the NGFS in 2020. However, the contrast between the two press releases is striking and deserves to be highlighted. The Fed implies that the NGFS's broad scope increasingly tested the boundaries of the Fed's mandate (which includes financial stability, although there is some debate/ambiguity regarding the scope and nature of this mandate). The NGFS's response is strong: it notes that "extreme climate events and natural disasters are among the few visible and painful certainties of our times", and announces it will be releasing its first ever vintage of short-term scenarios in 2025. In other words: the time horizon within which physical impacts of climate manifest themselves is shortening, and the risk that climate change will test the stability of our financial system is also increasing - so it is growing more and more relevant to central banks' financial stability mandates, not less. The news comes right off the heels of an important publication by the Financial Stability Board, providing an analytical toolkit to assess climate-related risks, noting their increased frequency, magnitude, and capacity to disrupt the financial system: https://lnkd.in/dTVeeSUt Jean Boissinot Morgan Després Véronique Ormezzano Kate Levick Elizabeth Jacobs Salvatore Serravalle Hilal Atici Pierre Monnin Julia Symon Maud ABDELLI

🎙 In conversation with… “OJK’s participation in the NGFS provides an opportunity to collaborate with central banks, financial regulators, policymakers, and institutions. It allows to gain insights from the experiences of other countries and apply successful strategies to the Indonesian context, while adopting more effective policies and frameworks to advance sustainable finance.” If you want to learn more about the Indonesian Financial Services Authority’s involvement with the #NGFS, take a look at our latest interview with Mr Agus E. Siregar, Deputy Commissioner for Financial System Stability. ➡️ Read more: https://lnkd.in/dSSmrd37

The #NGFS held the Asia-Pacific regional outreach meeting on 5th December 2024 in Kuala Lumpur. 👉 The outreach was a great opportunity for regional members to network, share national experiences and discuss topical issues. Thanks to Jessica Chew, Madelena Mohamed and the team at Bank Negara Malaysia for hosting this event and enabling regional collaboration. The discussion spanned a variety of topics of interest for central banks and supervisors to support transition and green finance such as how to include both adaptation and mitigation into transition plans and discussions on regional priorities given the significant impact of climate related events on GDP in the region. With capacity building and training being a significant enabler for these activities, the rich discussion on this topic provided pragmatic ideas to continue the journey towards a greener financial system. 🔹 Thanks to the participants for the interactive and engaging sessions Australian Prudential Regulation Authority | Bangko Sentral ng Pilipinas | Hong Kong Monetary Authority (HKMA) | Monetary Authority of Singapore (MAS) | Financial Services Agency, Japan (JFSA, 金融庁) | Bank of Japan | People's Bank of China | Reserve Bank of India (RBI) The World Bank | Deutsche Bundesbank | Banque de France #NGFS #Climate #Finance #Transition

🎙 In conversation with... “The value of the NGFS is immense not only for individual member jurisdictions like Ghana, but also for the entire world. This underscores the critical role that international cooperation plays in promoting and effectively addressing climate-related financial risks for the global financial system, for which we applaud the NGFS. The Bank of Ghana will continue to actively participate in NGFS Plenary deliberations and analytical work, and will continue to support NGFS’ outreach programmes in Africa and beyond.” If you want to learn more about the Bank of Ghana’s involvement with the #NGFS, take a look at our latest interview with Elsie Addo Awadzi, Second Deputy Governor at Bank of Ghana. ➡️ Read more: https://lnkd.in/ewRFsA_y

NGFS #Scenarios Phase V | Launch Event 🔹 On 8 November, the NGFS presented the fifth vintage of its long-term climate macro-financial scenarios for forward-looking climate risks assessments in a public launch event. Discover more about the updated scenarios in our launch event presented by Livio Stracca (Chair of the NGFS workstream on Scenario Design and Analysis), along with the modellers of our partner academic consortium. ➡️ Find the recorded session on YouTube here: https://lnkd.in/eGMwnb9w ➡️ Download the presented slides here: https://lnkd.in/eS-m5fvu 🙌 We also encourage you to have a look at the recording of the NGFS Finance Day Event at #COP29 in Baku here: https://lnkd.in/eGBDvamx Besides other highly interesting discussions on climate finance related topics, we hold a panel on the phase V scenarios and use cases for these.

NGFS at #COP29 | Data Directory 2.0   📣 Today, at its dedicated #FinanceDay Event at the German Pavilion at #COP29, the NGFS revealed a sneak-peek of its upcoming Data Directory 2.0!   🔔 Building on the experience from the first Data Directory launched in 2022, the NGFS is collaborating with the Bank for International Settlements – BIS Innovation Hub Singapore Centre, the Monetary Authority of Singapore (MAS) and the Banque de France to deliver in 2025 the Data Directory 2.0, a public good to unlock the full potential of the wealth of already existing climate data, and further bridge gaps.   🔔 The Data Directory 2.0 represents a new era of climate data accessibility and will feature a collaborative data ecosystem, advanced search and analytics tools, enhanced methods for integrating diverse data sources and an intuitive user-centric design.   🌐 The Data Directory 2.0 aims to bring the community together and is open to any interested participant to contribute and update its content. Knowledge doesn’t add, it multiplies, so join the Data Directory 2.0 adventure! 👉 Watch the Data Directory 2.0 short demo below, and the full presentation here: https://lnkd.in/dr_qR9gt 👉 Read more about the Data Directory: https://lnkd.in/dbrUDeKK?   Sabine Mauderer I Yann Marin I Jean Boissinot I Thomas Beretti I Harry Lee I Olivier Jacquemont I Dr. Patrick Hoffmann I Sivasubramanian Ramanathan I Léa Grisey

NGFS at #COP29 | Taking stock of the #greening of the financial system 📢 The NGFS is proud to release its Synthesis report on the greening of the financial system, offering a comprehensive view on recent progress and remaining gaps. Join us for an in-depth discussion of the report’s findings and other NGFS deliverables on #FinanceDay, in Baku and online! 🌐 This Synthesis report provides essential insights for #COP29, shedding light on the steps needed to embed climate, nature, and transition considerations into financial decision-making. Key topics include: - An assessment of climate finance alignment with #ParisAgreement objectives and a review of current funding gaps. - Insights into scaling up green finance instruments. - An overview of financial regulation, supervision and policy practices to foster a resilient green financial ecosystem. The report synthesises data and insights from NGFS members, observers, and knowledge partners such as the International Monetary Fund, OECD - OCDE, The World Bank, WWF, and Climate Policy Initiative to present a holistic view of progress and areas needing action.   ➡ Join us at the German pavilion today from 15:30 (UTC+4) to discuss these findings with leading voices from across the sector and explore the role of #supervision and #regulation, the utility of climate #scenarios, nature and climate #data, and the mobilisation of #climatefinance. 🔗 Read the report: https://lnkd.in/echzxRj6 🔗 See the full agenda and watch the event: https://lnkd.in/e5qE-R2d 🔗 Read more about NGFS publications at COP29: https://lnkd.in/e2mKEcAd

NGFS at #COP29 | What does #adaptation mean for the financial system? 📢 The NGFS is proud to announce the launch of its Conceptual Note on Adaptation. Join the #LaunchEvent tomorrow in Baku and online!   🌐This Conceptual Note highlights the growing importance of climate adaptation for financial stability, recognising that adaptation is increasingly central to the mandates of #CentralBanks and #FinancialSupervisors. Key topics include: - Insights on integrating climate adaptation into financial risk management practices and scaling up adaptation finance. - Analysis of the interlinkages between adaptation finance, insurance protection gaps and the prudential risks that a failure to adapt could pose to the financial sector - An annex with six national examples demonstrating current adaptation actions by authorities and partnerships with public and private sectors. - Four focus areas for central banks and supervisors, from improved metrics and disclosures to fostering supportive regulatory frameworks and international collaboration.   ➡ Join us tomorrow at the Australian Pavilion from 10:30 to 11:30 UTC+4 to explore the adaptation challenges facing global economies. The expert-led discussion will highlight the importance of integrating adaptation into risk management, promoting adaptation finance and bridging insurance protection gaps, for both developed economies and emerging markets.    🔗 Read the note: https://lnkd.in/ewEbpXqQ 🔗 Watch the event: https://lnkd.in/eivaxkTG The NGFS is organising a series of events on #FinanceDay. Learn more here: https://lnkd.in/eMFQJFdv Sean Carmody (Australian Prudential Regulation Authority) | Shelagh Kahonda (National Bank of Rwanda (NBR)) | Sabine Mauderer (Deutsche Bundesbank) | Michai Robertson (ODI Global) | Usher, E. (United Nations Environment Programme Finance Initiative (UNEP FI)) | Stephane Hallegatte (The World Bank)

Steering through uncharted waters!   On Saturday, I had the honour to open the 2024 #GreenSwanConference in Basel. This high-level event brought together central bankers, representatives from international organisations, the corporate sector, and academia. It was a great opportunity to discuss the impacts of climate change on the economy, and the implications for central banks and monetary policy.   Key takeaways from my speech:   ▶ #ClimateChange and the #GreenTransition are reshaping our economies. ▶ They add to the host of challenges that central banks must to consider in their work. ▶ While we have already made progress in understanding #ClimateRisks, our journey has just started. ▶ We will continue to delve into the complex macroeconomic effects of climate change and further refine our analytical tools.   I am grateful to the Bank for International Settlements – BIS, the Network for Greening the Financial System (NGFS), the Banco de España, and the Bank of Japan for organising this conference and to all participants for their valuable contributions and the insightful discussions.   I look forward to further fostering our cooperation to navigate the challenges of climate change.   🔗 Check out my full remarks here: https://lnkd.in/e9uKUQvg Or watch the recording of #Greenswan2024 (link in comments below).   #Climate #Economy #Finance #SustainableFinance #CentralBanking Copyright images: BIS