Caribbean and Americas
Since March 2022, Canada has issued green bonds to mobilise capital in support of its climate and enviromental objectives The government issued CA$6b of green bonds in 2024, to which the BOC provided debt management and expert market advice
Caribbean and Americas
During 2024 the CBOB implemented the first "green banknote" printed on Giesecke's and Devrient's Addvance substrate. This reduces the carbon footprint of the Bank and enhances the security of the currency
Caribbean and Americas
The CBOB issued a Climate Resilence Survey to determine Supervised Financial Instituions' (SFIs) current climate risk exposure This was used in formalising the CBOB's climate-related financial risk framework
Caribbean and Americas
The ECCB held a series of climate-related risks capacity building sessions in May 2024 to continue building capacity in the financial sector throughout the ECCU region. Accordingly, efforts continued towards intergrating climate-related financial risks into the ECCB's Risk-Based Supervision Framework
View initiative: Climate-Related Risks Capacity Building Sessions
Caribbean and Americas
Phase two of the Adapt'Action Facility for Integrating Climate Related Financial Risks was completed in May 2024 Phase two involved conducting a diagnostic of climate-related financial risks in the ECCU; conducting due diligence to inform the development of stress testing and building awareness and conducting training and peer learning
View initiative: Adapt'Action Facility for Integrating Climate-Related Financial Risks
Pacific
The purpose of the NGFS is to share best practices, contribute to the development of climate and environment-related risk management in the financial sector, and mobilise mainstream finance to support the transition towards a sustainable economy. Over 130 central banks and supervisors are members of the NGFS. RBA involvement The RBA joined the NGFS in July 2018 and contributed to several workstreams over 2023/24.
Pacific
• The Reserve Bank of Australia is focusing on the role of the financial markets in addressing climate risk, and on the outlook for green and sustainable finance and measures being taken to support it. The focus is also on green bonds, green loans, green securitisations, and ethical funds. • The Bank also conducts regular analysis of the implications of climate change for the Australian economy and financial system. • The Reserve Bank is also committed to improving the environmental performance of its operations. Furthermore, the Reserve Bank is considering what sustainability and climate-related financial disclosures can be made, starting with operational emissions reporting in line with the Department of Finance guidelines in the Bank's 2022/23 Annual Report
Pacific
The IGFWG provided valuable exchanges on regulators' experiences in developing green taxonomies and climate and disaster risk finance and insurance initiatives across member countries.
Pacific
The Reserve Bank of Fiji (RBF), in partnership with the International Finance Corporation (IFC) hosted a second annual Green Finance Taxonomy Consultation Workshop to assist in the development of a national taxonmy that supports Fiji's enviromental and development goals
Pacific
• Fiji in 2017 successfully issued a sovereign green bond that raised US$50 million to support climate change mitigation and adaptation. • The bond was issues to support climate change mitigation and adaption
Pacific
• The Reserve Bank launched its Climate Change Strategy in December 2018, seeking to contribute to the Government's objective of a sustainable, productive, and inclusive economy. The Bank also seeks to facilitate, where possible, a smooth transition to a low-carbon economy, ensuring that this transition does not diminish or adversely impact the financial system's soundness and efficiency. • The Reserve Bank of New Zealand has affirmed its Climate Change Strategy through the investment of US$100 million in green bonds to promote investments in green finance, aligning well with the Reserve Bank's own Climate Change Strategy that was launched in 2022.
Pacific
The Natadola Roadmap was agreed upon by several Pacific Islands' Central Banks and identifies regional capacity building in green finance as a priority and encourages the pooling of funding and technical expertise between countries, as well as the leveraging of technological solutions by the financial sector
Africa
Framework for managing climate-related financial risks, effective January 2026 for banks and 2027 for other institutions
Africa
Strategic framework for addressing climate and sustainability risks in the financial sector
Africa
Bilateral cooperation framework for climate change mitigation through carbon credit trading under Paris Agreement Article 6
Africa
Regulatory guidelines for banks to manage climate and environmental financial risks
Africa
Partnership with Alliance for a Green Revolution in Africa to stimulate agricultural financing
View initiative: CBN-AGRA Partnership for Agricultural Financing
Africa
Comprehensive guidelines for financial institutions on climate risk management
Africa
Conference on the role of central banks in addressing climate change challenges
View initiative: International Conference on Central Banks and Climate Change
Africa
2025 guidelines for climate risk management and disclosure requirements
View initiative: Guidelines on Climate-Related Financial Risks Management and Disclosures
Africa
Program to increase financial flows for sustainable development and compile green financing data from commercial banks and NBFIs
Africa
Established Climate Change Centre in 2021, joined NGFS, and developed sustainable bonds guidance
Africa
Published October 2021 guidance on climate risk management with Kenya Bankers Association stress testing
Africa
Comprehensive climate strategy including payment system framework and guidance notices for banks and insurers
Africa
Recognition of climate change impacts through Committee of Central Bank Governors Macroeconomic Subcommittee
Asia
Refinancing facilities promoting low-carbon technologies and subsidized credit for solar energy projects
Asia
Framework for building institutional resilience and channeling funds to decarbonize the economy
Asia
Strategic approach incorporating financial sector transformation towards low-carbon and resource-efficient economies
Asia
Fixed deposit scheme directing funds to renewable energy, green building, and sustainable agriculture projects
Asia
Comprehensive initiative for climate-resilient financial sector and investment portfolio
Asia
Green finance taxonomy and readiness framework for climate challenges in the financial sector
Europe
Contribution to ECB's harmonized climate change-related indicators for the Euro area
Europe
NGFS membership and participation in Euro-system sustainable investment framework with annual climate disclosures
Europe
Annual climate-related financial disclosure and green bond purchasing program initiated in 2021
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Africa
The course is tailored for central bank officials and other related roles. The course is designed to equip CB professionals with the knowledge and tools to intergrate sustainability into their operations
1 week In Person
Learn more: Sustainable Finance And Climate Risk For Central Banks Training Course
General
The course covers the impacts of climate change on the economy and financial markets, methods for identification and assessment of climate risks and ways to finance the transition to a climate neutral economy. The course is sponsored by Oesterreichische National Bank (ONB)
1 week In Person
Learn more: Green Finance -Focus on Monetary Policy and Regulation
Africa
This capacity-building program empowers professionals to integrate green monetary policies, enhance ESG reporting, and develop green bonds and sustainable lending frameworks. It emphasizes innovative approaches such as climate stress testing, green taxonomies, and decarbonization financing to address global climate-related financial risks and opportunities.
2 weeks In Person
Learn more: Promoting Green Finance Initiatives in Central Banks
General
For central banks, a key question is how to implement climate change at a strategic level when it affects the whole central bank, yet in a variety of specialised and localised ways. As market players central banks buy and sell assets which have ESG ratings; as supervisors they assess and address the financial risks from climate change; and lastly as institutions they have a carbon footprint. This course is designed to equip central bankers to meet these challenges. Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, with time set aside for a workshop on implementing key learnings.
1 week Virtual
Learn more: Climate Change: Managing Financial Risks and Green Finance Initiatives
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This entails adjusting monetary policy and capital requirements to ensure innovative and sustainable financing solutions including, moving investments away from fossil fuels and other high-carbon industries (Volz and Knaack, 2023; Green Central Banking, 2023). This can be done through green differentiated reserve requirements and capital requirements, and green quantitative easing (UNEP, 2017). Central banks could also support the move away from fossil fuels by excluding fossil fuels from asset purchase programmes and collateral frameworks.
Central banks can also play a role in addressing against climate change by providing the appropriate regulatory frameworks (UN Environmental Programme, 2023; ADBI,2018). The greening of financial regulation can include the incorporation of Environmental Social 3 Governance (ESG) criteria in their investment decisions or encouraging ESG criteria to be employed across the financial system (NGFS, 2019). Central banks could develop policies that encourage financial institutions to integrate environmental factors into their operations. They could also establish guidelines and reporting standards to facilitate greener investments (UN Environment Programme, 2017). Additionally, this could include implementing capital requirements that consider the environmental impact of investments and encouraging banks to prioritise green financing. Examples of this have been seen in the United Kingdom and Kenya where they set standards for green finance lending (Jones and Ranasinge, 2020).
Read more: Prudential Regulation and Policymaking ecb.europa.eu
Another way in which central banks can support green finance initiatives to help combat climate change would be by providing liquidity support. This can be done for targeted green projects and sustainable initiatives or through the provision of preferential interest rates to financial institutions for green investments.
Read more: Liquidity support riksbank.se elibrary.imf.org ecb.europa.eu
Central banks could also support research and development on green financing and climate-related risk to contribute to the development of tools to assess environmental risks and build climate stress tests. Commonwealth countries that currently have tools to assess climate risks as a financial risk include the United Kingdom while others like Australia have plans to start incorporating these elements in central banking (Jones and Ranasinge, 2020). Central banks can support the development of green financial markets by promoting the issuance of green bonds, supporting the establishment of sustainable investment funds, and encouraging the development of sustainable financial products. They could also support the development of green finance models and enforce adequate pricing of environmental and carbon risks by financial institutions (ADB, 2018).
Read more: Research and development, market development and climate stress testing. inspiregreenfinance.org soas.ac.uk
Lastly, central banks can promote transparency and disclosure of climate-related risks by requiring financial institutions to disclose their exposure to environmental risks (Volz and Knaack, 2023). This has been done in countries like Australia and the United Kingdom (Jones and Ranasinge, 2020). They can also support the development of standardised reporting frameworks for environmental data, facilitating better assessment and comparability of green investments. By leveraging their regulatory and policy tools, central banks can play a pivotal role in steering financial systems towards sustainable and green financing, contributing to the transition to a low-carbon economy.
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Single Publication May 2024
Comprehensive report with ten recommendations for central banks on SRI policies and implementation
Single Publication May 2024
Technical document on integrating net-zero considerations into central bank investments in equity and corporate bonds
View publication: Decarbonisation strategies for corporate portfolios of central banks
Single Publication May 2024
Analysis of climate risks in sovereign debt investments for central banks
Single Publication Nov 2024
Latest climate scenarios for financial risk analysis by central banks and supervisors
View publication: NGFS Climate Scenarios for central banks and supervisors - Phase V
Single Publication Oct 2024
Analysis of climate change impacts on macroeconomic conditions and monetary policy implications
View publication: Climate change, the macroeconomy and monetary policy
Single Publication Oct 2024
Practical guide for central banks on climate macroeconomic modeling
Single Publication 2021
Examination of how addressing climate risks fits into central bank mandates
Single Publication 2022
Comprehensive literature review identifying key themes in green finance research
View publication: Green Finance Research Around the World: A Review of Literature
Single Publication Jan 2025
Bibliometric analysis of 1,923 publications showing evolution of green finance research
View publication: The evolution of green finance research: A comprehensive bibliometric analysis
Single Publication Mar 2022
Final report on biodiversity and financial stability from joint NGFS-INSPIRE study group
View publication: Central Banking and Supervision in the Biosphere
Single Publication 2024
Framework for integrating green finance with financial inclusion objectives
View publication: Inclusive green finance: A new agenda for central banks and financial supervisors
Single Publication 2024
Comprehensive analysis of climate finance, green monetary policies, and financial supervision
View publication: Global Climate Challenges, Innovative Finance, and Green Central Banking
Single Publication Mar 2020
Analysis of green banking initiatives and central bank/supervisor roles in environmental transition
Single Publication 2022
Systematic review of green finance in banking sector with analysis of products and determinants
View publication: A review of studies on green finance of banks, research gaps and future directions
Single Publication 2020
Overview of INSPIRE's research efforts and 21 commissioned projects supporting NGFS work
View publication: Building the analytical foundations for greening the financial system
Single Publication 2018
Foundational report establishing climate risks as financial risks within central bank mandates
Single Publication Dec 2023
Bibliometric analysis identifying seven key themes in green finance research from 978 publications
View publication: Emerging new themes in green finance: a systematic literature review
Single Publication 2023
Systematic literature review of green finance applications in polluting companies
View publication: A Thematic Study of Green Finance with Special Reference to Polluting Companies
Collection Various
Collection of BIS research on green bonds, sustainable investing, and central bank green investment strategies
Collection Ongoing
Independent research and analysis on central bank climate policies and green finance developments
Collection Ongoing
Regular working papers on green finance, climate risk, and central bank policy
Collection Ongoing
Specialized research papers on green finance scaling, adaptation, and monetary policy
Collection Ongoing
Cutting-edge research commissioned to support NGFS workstreams
Collection Ongoing
Climate-related financial risk research and green finance studies
Collection Ongoing
Research on climate impacts on economic stability and financial systems
Platform Ongoing
Collaborative platform with resources from multiple institutions
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Network
A group of Central Banks and Supervisors willing, on a voluntary basis, to share best practices and contribute to the development of environment and climate risk management in the financial sector and to mobilize mainstream finance to support the transition toward. Focused on scenarios.
Resource Portal
An online platform that centralises climate-related and environmental risks training resources to build knowledge and expertise amongst central banks and supervisors, in order to respond to financial risks arising from climate change and environmental degradation.
Network
A voluntary community of financial sector regulators, central banks, ministries of finance, ministries of environment, and industry associations from emerging markets committed to advancing sustainable finance for national development priorities, financial market deepening, and stability.
Toolkit & Guidelines
NGFS climate scenarios: the Climate scenarios explore a range of plausible scenarios. They provide a common and up-to-date reference point for understanding how climate change (physical risk) and climate policy and technology trends (transition risk) could evolve in different futures. Each scenario was chosen to show a range of higher and lower risk outcomes.
Toolkit & Guidelines
TCFD was created to develop recommendations on the types of information that companies should disclose to support investors, lenders, and insurance underwriters in appropriately assessing and pricing a specific set of risks-risks related to climate change. The Task Force on Climate-related Financial Disclosures (TCFD) provides a framework for organizations to disclose clear, consistent, and decision-useful climate-related financial information. These recommendations are applicable across sectors and geographies and are intended for inclusion in mainstream financial filings.
Toolkit & Guidelines
i. IMF/World Climate Policy Assessment Tool: is a spreadsheet-based model which helps policymakers to assess, design, and implement climate mitigation policies. CPAT allows for the rapid estimation of effects of climate mitigation policies for over 200 countries. This includes impacts on energy demand and prices, CO2, and other greenhouse gas (GHG) emissions, fiscal revenues, GDP, welfare, distributional impacts on households and industries, and development co-benefits like health benefits from reductions in local air pollution and road accidents.
Toolkit & Guidelines
Offers countries a thorough examination of their climate policies, with special attention to both mitigation and adaptation measures, as well as the institutional and legal frameworks required to support them. It is designed to work alongside other IMF climate capacity development tools-such as the Climate-Public Investment Management Assessment (C PIMA) and Green Public Financial Management-as well as assessments from other institutions, notably the World Bank's Country Climate and Development Reports (CCDR).
Data & Modelling Tool
This was developed by Climate Analytics in conjunction with NGFS, ETH Zurich, Potsdam Institute for Climate Impact Research. It allows central banks to explore climate scenarios and visualize economic impacts. This tool shows how the severity of climate change impacts will increase over time in continents, countries and provinces at different levels of warming, starting with 1.5°C, the limit in the Paris Agreement. It also allows access to the underlying data.
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