Latest news with #NGFS
Reuters
15-07-2025
- Business
- Reuters
Extreme weather could cause 5% drop in euro zone GDP, bank watchdogs find
LONDON, July 9 (Reuters) - Extreme weather events such as heatwaves, flooding and wildfires could wipe as much off euro zone GDP in the next five years as the global financial crisis or the COVID-19 pandemic, a senior European Central Bank official said on Wednesday. A series of severe weather-related events could cause an almost 5% near-term drop in euro zone growth, based on the most extreme climate scenario devised by a group of over 140 bank supervisors and regulators earlier this year, according to Livio Stracca, deputy director general at the ECB. "The peak negative effect on euro area GDP is almost 5%, which is the same order of magnitude as what we have seen in the global financial crisis and a little bit less than COVID-19," said Stracca, who also chairs the Network for Greening the Financial System's workstream on scenario design and analysis. The findings are based on a new set of tools designed by the NGFS, a group of central bankers and supervisors working to address climate-risk in the financial sector and economy. The tools aim to help banks and companies understand how climate change may impact their businesses in the short term by testing out a series of climate-related scenarios. The group found euro zone growth was most severely impacted in a scenario known as "Disasters and Policy Stagnation" where heatwaves, droughts and wildfires in 2026 were followed by a combination of floods and storms in 2027. Should the euro zone follow through with its net-zero transition policies, including its plan for a 55% reduction in greenhouse gas emissions by 2030, it could largely mitigate losses, another scenario found. "Climate-related risks are an immediate concern for financial stability and economic growth," Stracca and Bundesbank board member Sabine Mauderer said in a blog published by the ECB on Wednesday. "The NGFS scenarios ... indicate that a globally coordinated net-zero effort would safeguard the euro area's economic interests over the next five years." The NGFS has already released a widely used set of climate scenarios, but this is the first time they have offered tools to assess the short-term and physical impacts.
Straits Times
10-07-2025
- Business
- Straits Times
Extreme weather could cause 5 per cent drop in euro zone GDP, bank watchdogs find
Sign up now: Get ST's newsletters delivered to your inbox The tools aim to help banks and companies understand how climate change may impact their businesses in the short term by testing out a series of climate-related scenarios. LONDON - Extreme weather events such as heatwaves, flooding and wildfires could wipe as much off euro zone GDP in the next five years as the global financial crisis or the Covid-19 pandemic, a senior European Central Bank official said on July 9. A series of severe weather-related events could cause an almost 5 per cent near-term drop in euro zone growth, based on the most extreme climate scenario devised by a group of over 140 bank supervisors and regulators earlier this year, according to Livio Stracca, deputy director general at the ECB. 'The peak negative effect on euro area GDP is almost 5 per cent, which is the same order of magnitude as what we have seen in the global financial crisis and a little bit less than Covid-19,' said Dr Stracca, who also chairs the Network for Greening the Financial System's workstream on scenario design and analysis. The findings are based on a new set of tools designed by the NGFS, a group of central bankers and supervisors working to address climate-risk in the financial sector and economy. The tools aim to help banks and companies understand how climate change may impact their businesses in the short term by testing out a series of climate-related scenarios. The group found euro zone growth was most severely impacted in a scenario known as 'Disasters and Policy Stagnation' where heatwaves, droughts and wildfires in 2026 were followed by a combination of floods and storms in 2027. Should the euro zone follow through with its net-zero transition policies, including its plan for a 55 per cent reduction in greenhouse gas emissions by 2030, it could largely mitigate losses, another scenario found. Top stories Swipe. Select. Stay informed. World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Asia Dr Mahathir at 100: Still haunted by the Malay Dilemma Singapore What's next for PSP following its post-GE leadership shake-up? Singapore 'Give a positive review': Hidden AI prompt found in academic paper by NUS researchers Multimedia 60 objects to mark SG60: Which is your favourite? Singapore Apex court upholds SMC's conviction of doctor who gave patients unapproved hormones Singapore Singaporean fugitive arrested in Thailand for suspected drug trafficking and handed over to CNB World Trump issues tariff notices to 7 minor trading partners, hits Brazil with 50% tariff 'Climate-related risks are an immediate concern for financial stability and economic growth,' Dr Stracca and Bundesbank board member Sabine Mauderer said in a blog published by the ECB on July 9. 'The NGFS scenarios ... indicate that a globally coordinated net-zero effort would safeguard the euro area's economic interests over the next five years.' The NGFS has already released a widely used set of climate scenarios, but this is the first time they have offered tools to assess the short-term and physical impacts. REUTERS
Al Etihad
19-06-2025
- Business
- Al Etihad
CBUAE organises Climate Forum, ‘Network for Greening the Financial System' meeting in Abu Dhabi
19 June 2025 20:14 ABU DHABI (WAM)Under the Patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of Directors of the Central Bank of the United Arab Emirates (CBUAE), the CBUAE is organising its first Climate Forum and a meeting of the Network for Greening the Financial System (NGFS) at the St. Regis Saadiyat Island Resorts, Abu Dhabi, on June 26, two-day event demonstrates the CBUAE's commitment to driving sustainable finance and leading the transition towards a more sustainable financial system, in line with the UAE's vision to achieve net zero by Climate Forum brings together financial leaders, policymakers, international experts in sustainable finance and climate risks, and senior officials from regulatory bodies, central banks, and international financial aim is to exchange insights on ways to foster better integration of climate policies in risk management and investment and to explore effective solutions for enhancing financial sector resilience in the face of future climate and environmental will also address frameworks for activating regional and international cooperation in the areas of monetary policy, regulation and sustainable Islamic finance, thereby strengthening the complementary roles between the public and private sectors. This further underscores the UAE's growing position as a regional and international hub for leading the global dialogue on the future of sustainable NGFS meeting will be centred on 'greening' monetary policy frameworks. Discussions will focus on integrating climate change impacts into monetary policy formulation and operations, alongside reviewing the NGFS's latest work progress and plans. Since its inception in 2017, the NGFS has become a global force, uniting over 160 central banks and financial Mohamed Balama, Governor of the CBUAE, said, "The convening of the Climate Forum and the Network for Greening the Financial System meeting marks a milestone amidst the global shifts in economic policies and the growing climate challenges. In line with the wise leadership's vision for the UAE and its commitment to achieving net zero by 2050, the CBUAE continues to solidify its pivotal role in spearheading financial sustainability." He added, "This is achieved by strengthening the green finance infrastructure and developing regulatory frameworks that support the integration of climate risks within the financial sector's ecosystem, thereby enhancing its resilience, reinforcing its stability, and achieving the desired balance between economic growth and sustainability."
Times of Oman
19-06-2025
- Business
- Times of Oman
CBO joins network for greening the financial system
Muscat: The Central Bank of Oman (CBO) has officially announced its membership in the Network for Greening the Financial System (NGFS), a global alliance of central banks and supervisory authorities aimed at enhancing the financial sector's resilience to climate-related and environmental risks. Launched during the "One Planet Summit" in Paris in December 2017 with eight founding members, the NGFS has since expanded into a worldwide network comprising over 160 central banks and regulatory bodies. The initiative seeks to collaborate with members in transforming the financial and banking systems into environmentally friendly and sustainable models. This is achieved through knowledge-sharing, cooperation, and the adoption of international best practices in developing regulatory frameworks to promote sustainability. The CBO's membership underscores its steadfast commitment to building a resilient, sustainable, and forward-looking financial system. This move aligns with Oman Vision 2040, the Sultanate of Oman's national strategy for a structured transition toward net-zero emissions, as well as the launch of the National Environmental Policy for Energy. As part of its strategic climate initiatives, the CBO has introduced a comprehensive regulatory framework and roadmap designed to advance sustainable and green finance in line with international standards and Oman's goal of achievingcarbon neutrality by 2050. These efforts include phased disclosure requirements for licensed financial institutions, alongside active participation in global climate initiatives, such as those led by the G20. Through this membership, the CBO joins a collaborative international effort to promote sustainable finance and strengthen the financial sector's readiness in addressing escalating challenges posed by climate change and ecosystem degradation. —— Ends/AH
Zawya
19-06-2025
- Business
- Zawya
CBUAE organises climate forum and 'Network for Greening the Financial System' meeting in Abu Dhabi
Abu Dhabi: Under the Patronage of H.H. Sheikh Mansour Bin Zayed Al Nahyan Vice President, Deputy Prime Minister and Chairman of the Presidential Court, Chairman of the Board of Directors of the Central Bank of the United Arab Emirates, the CBUAE is organising its first Climate Forum and a meeting of the Network for Greening the Financial System (NGFS) at the St. Regis Saadiyat Island Resorts, Abu Dhabi, on 26 June 2025. The two-day event demonstrates the CBUAE's commitment in driving sustainable finance and leading the transition towards a more sustainable financial system, in line with the UAE's vision to achieve net zero by 2050. The Climate Forum brings together financial leaders, policymakers, international experts in sustainable finance and in climate risks, and senior officials from regulatory bodies, central banks, and international financial institutions. The aim is to exchange insights on ways to foster better integration of climate policies in risk management and investment, and to explore effective solutions for enhancing financial sector resilience in the face of future climate and environmental challenges. It will also address frameworks for activating regional and international cooperation in the areas of monetary policy, regulation and sustainable Islamic finance, thereby strengthening the complementary roles between the public and private sectors. This further underscores the UAE's growing position as a regional and international hub for leading the global dialogue on the future of sustainable finance. The NGFS meeting will be centred on 'greening' monetary policy frameworks. Discussions will focus on integrating climate change impacts into monetary policy formulation and operations, alongside reviewing the NGFS's latest work progress and future plans. Since its inception in 2017, the NGFS has become a global force, uniting over 160 central banks and financial supervisors. His Excellency Khaled Mohamed Balama, Governor of the CBUAE, said: "The convening of the Climate Forum and the Network for Greening the Financial System meeting marks a milestone amidst the global shifts in economic policies and the growing climate challenges. In line with the wise leadership's vision for the UAE and its commitment to achieving net zero by 2050, the CBUAE continues to solidify its pivotal role in spearheading financial sustainability. This is achieved by strengthening the green finance infrastructure and developing regulatory frameworks that support the integration of climate risks within the financial sector's ecosystem, thereby enhancing its resilience, reinforcing its stability, and achieving the desired balance between economic growth and sustainability."
