Our collective journey began in Paris virtually 4 years in the past, when eight central banks and supervisors from an already various background determined to affix forces. Our purpose was to rise to the local weather problem and work collectively to develop the instruments we’d like as central banks and supervisors to foster and speed up the greening of the worldwide monetary system.
As a coalition of the prepared, we’ve been working collectively within the Community for Greening the Monetary System (NGFS), which I’m proud to chair. Over time, others have joined us in our efforts. And I’m delighted to announce right here at this time that our community is welcoming the supervisory authorities of Turkey and Jersey and the central banks of Jordan, the Dominican Republic and Peru. Which means that the NGFS – and I’m additionally very happy with what I’m about to announce proper now – now brings collectively a complete of 100 central banks and supervisors. Our community is each enriched by its range and strengthened by the shared dedication of its members to handle local weather change and environmental points inside and due to their mandates.
Since our Name for Motion report of April 2019, we’ve developed and shared sensible instruments and information, most notably within the fields of prudential supervision, local weather situation evaluation, accountable funding, the inclusion of climate-related concerns in financial coverage frameworks, knowledge gaps, and constructing consciousness and mental capability.
Primarily based on our collaborative work, NGFS members have taken very concrete actions in the direction of greening the monetary system. The examples supplied by the earlier panellists are a really telling illustration of this dynamic, and plenty of others in our community may share comparable experiences.
However I’ve not simply come right here to announce that our community now brings collectively 100 members. I’m additionally extraordinarily happy to announce that at this time the NGFS is publishing its Glasgow Declaration entitled “Dedicated to Motion”, wherein we reiterate our willingness to contribute to the worldwide response required to satisfy the aims of the Paris Settlement. And we make concrete commitments on what we’ll work on and ship within the coming years, protecting all of the core actions of our community of central banks and supervisors.
Trying forward, we’ll deepen, amplify and strengthen our collective work and efforts. We’ll proceed to make the monetary system extra resilient to climate-related and environmental dangers and encourage the scaling-up of the financing flows wanted to help the transition in the direction of a sustainable financial system.
To take action, within the coming years the NGFS will additional improve and enrich its local weather situations. We’ll deepen our analytical work on how local weather change could be taken under consideration within the conduct of financial coverage. We’ll intensify our work to bridge climate-related knowledge gaps. We’ll publish tips on TCFD-aligned reporting for central banks. We’ll step up our efforts on capability constructing, with a specific concentrate on members from rising and creating economies. And we’ll proceed to discover rising subjects, such because the affect of biodiversity loss or the dangers related to climate-related litigation, and work in the direction of addressing them.
The NGFS can solely be as sturdy because the neighborhood supporting its work, and its collective achievements assist to foster local weather motion by its members. For this reason I’m very comfortable to say that, along with our Glasgow Declaration, virtually two thirds of NGFS members are taking the chance of COP26 to publish a person pledge or technique. Taken collectively, these clearly exhibit that our community is set to behave and fulfil its tasks.
These pledges and techniques present that the mixing of climate-related and environmental dangers into monetary stability monitoring and microprudential supervision is on the best way to changing into a actuality. Certainly, virtually all of the pledges and techniques contain actions to strengthen microprudential and macroprudential climate-related supervision – through the use of situation evaluation together with local weather stress checks, by issuing supervisory expectations or steering, or by encouraging their organisations to construct capability.
These pledges and techniques clearly sign the brand new frontier of the NGFS’s work: lots of them embody actions to additional discover choices to combine climate-related concerns into financial coverage or to maneuver in the direction of extra disclosures on their organisations’ actions.
In Paris, virtually six years in the past, the events to the UN Framework Conference on Local weather Change set a objective: to “make monetary flows in line with a pathway in the direction of low greenhouse fuel emissions and climate-resilient growth”. We – central banks and supervisors of the NGFS – have heard you very clearly and have sought to take motion, inside our mandates, to contribute to this objective. Whereas governments are within the driving seat to put out insurance policies and set formidable transition paths, we’re dedicated to enjoying our half and fulfilling our tasks, inside our mandates, to help and contribute to a profitable transition to internet zero. With at this time’s announcement of the NGFS Glasgow Declaration – Dedicated to Motion – our community of 100 central banks and supervisors is not only a coalition of the prepared: we’re a coalition of the dedicated.