Network for Greening the Financial System (NGFS)
The US Federal Bank recently joined the Network for Greening the Financial System. In Europe, several European Securities and Market Authorities have joined NGFS recently. The other new members of the network are Central Bank of Iceland, Polish Financial Supervision Authority, Uruguay, Paraguay and financial authorities of Indonesia and Egypt.
In July 2020, the Asian Development Bank joined the Network for Greening the Financial System as an observer.
About Network for Greening the Financial System
The Network for Greening the Financial System was created in 2017. It is a network of seventy-five central banks and financial supervisors. It was established by eight Central Banks to strengthen the Global Response required to meet the goals of Paris Agreement. The NGFS system aims to promote Green Finance. It recommends the role of Central Banks for Climate Change. It supports best practices in development of climate risk management in financial sector.
The current chair of the network is Dutch Central Banker Frank Elderson.
The purpose of the Network for Greening the Financial System is to define, contribute and promote to the development of best practices that are to be implemented within and outside the membership of the network. It also conducts and commissions analytical work on Green Finance.
The NGFS was announced at the One Planet Summit held at Paris in 2017.
Work and Activities of NGFS
The NGFS organizes events in Climate Change. It is currently working on the following
- Workstream on Micro Prudential or Supervision
- Workstream on Macrofinancial.
- Workstream on Scaling up Green Finance.
- Workstream on Bridging the Data Gaps.
- Workstream on Research.
One Planet Summit
It was announced by the French President Emmanuel Macron at COP 23. The first One Planet Summit was held in 2017. The organizers of One Planet Summit are the French Government, World Bank and the United Nations. The next One Planet Summit is to be hosted by France on January 11, 2021.
The three main objectives of One Planet Summit are Innovation, Take tangible and collective actions and supporting one another.