The Network for Greening the Financial System (NGFS) is an international and expanding network of central banks and supervisors. Greening the financial system together.
The NGFS is an international collaborative structure which aims to green the financial system and strengthen its efforts towards achieving the Paris Climate Agreement goals. For instance, the NGFS assesses how central banks and supervisory authorities can better manage climate-related and environmental risks in the financial sector, and it explores the available options for mobilising capital for green and low-carbon investments.
DNB has been involved in the NGFS since its inception in December 2017. Other pioneers include the central banks and supervisory authorities from China, Germany, France, Mexico, Singapore, the United Kingdom and Sweden. Today, more than 100 central banks, supervisory authorities and organisations from around the world have joined the NGFS. In 2022, Ravi Menon of the Monetary Authority of Singapore (MAS) succeeded ECB Executive Board Member and former DNB Executive Board Member Frank Elderson as the Chair of the NGFS. Banque de France is in charge of the secretariat.
NGFS members come from all over the world, from both advanced and less advanced countries. Several European institutions have also joined, such as the ECB, EBA, EIOPA and ESMA. International organisations including the IMF, the BCBS, the OECD and the World Bank have joined as observers. A full overview of all members and observers can be found on the NGFS website.
Climate change brings risks to the financial sector that are new and difficult to analyse. “However, it is important to take action now,” says Frank Elderson. “As long as global temperatures and sea levels keep rising – and with them the financial risks of climate change – central banks, supervisory authorities and financial institutions must keep raising the bar to confront these challenges and make the financial system greener.”
In six working groups, NGFS members work together on:
Read more in the NGFS 2022-2024 work programme. In addition, the NGFS recently launched an initiative focusing on 'blended finance': mobilising public-private financing for sustainability initiatives.
DNB is a permanent member of the NGFS Steering Committee. Cindy van Oorschot, DNB Sustainability Programme Director, represents DNB on the Steering Committee.
DNB participates in all working groups and is one of the initiators of the Task Force for Nature-related Risks and the Blended Finance initiative.
See the NGFS website for more information.
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