The Network for Greening the Financial System (NGFS) is a network of 114 central banks and financial supervisors that aims to accelerate the scaling up of

green finance Sustainable finance is the set of practices, standards, norms, regulations and products that pursue financial returns alongside environmental and/or social objectives. It is sometimes used interchangeably with Environmental, social, and governance ...

and develop recommendations for central banks' role for climate change. The NGFS was created in 2017 and its secretariat is hosted by the

Banque de France The Bank of France ( ) is the national central bank for France within the Eurosystem. It was the French central bank between 1800 and 1998, issuing the French franc. It does not translate its name to English, and thus calls itself ''Banque de ...

. Its current chair is Ravi Menon, Managing Director of the Monetary Authority of Singapore. The NGFS has been awarded best green initiative of the year 2020 by Centralbanking.com. According to its charter, the purpose of the NGFS is ''"to define, promote and contribute to the development of best practices to be implemented within and outside of the Membership of the NGFS and to conduct or commission analytical work on green finance."'' The NGFS was announced at the Paris “One Planet Summit” in December 2017. The network was launched by 8 founding central banks, under the leadership of

's governor François Villeroy de Galhau, the Dutch Central Bank's Frank Elderson and the

Bank of England The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the Kingdom of England, English Government's banker and debt manager, and still one ...

's former governor

Mark Carney Mark Joseph Carney (born March 16, 1965) is a Canadian politician and economist who has served as the 24th and current Prime Minister of Canada, prime minister of Canada since 2025. He has served as Leader of the Liberal Party of Canada, lead ...

Work and activities

The NGFS organises events and research on climate change.

Recommendations for central banks and supervisory authorities

In 2021, the NGFS identified 9 policy options that could be chosen by central banks to align their monetary policy with climate objectives. The NGFS work is currently organised around 4 workstreams (WS) and 2 task forces (TF): * WS “Supervision”, chaired by Mr Tolga Yalkin from the

Office of the Superintendent of Financial Institutions The Office of the Superintendent of Financial Institutions (OSFI; , BSIF) is an independent agency of the Government of Canada reporting to the Minister of Finance created "to contribute to public confidence in the Canadian financial system". ...

* WS “Scenario Design and Analysis”, chaired by Mr Livio Stracca from the

European Central Bank The European Central Bank (ECB) is the central component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#International ...

* WS “Monetary Policy”, chaired by Mr James Talbot from the

* WS “Net Zero for Central Banks”, co-chaired by Mr Paolo Angelini from the

Bank of Italy The Bank of Italy (Italian language, Italian: ''Banca d'Italia'', , informally referred to as ''Bankitalia'') is the National central bank (Eurosystem), national central bank for Italy within the Eurosystem. It was the Italian central bank from ...

and Ms Simone Robbers from the

Reserve Bank of New Zealand The Reserve Bank of New Zealand (RBNZ) () is the central bank of New Zealand. It was established in 1934 and is currently constituted under the ''Reserve Bank of New Zealand Act 2021''. The current acting governor of the Reserve Bank, Christian ...

* TF “Nature-Related Risks”, co-chaired by Ms Emmanuelle Assouan from the

Bank of France The Bank of France ( ) is the national central bank for France within the Eurosystem. It was the French central bank between 1800 and 1998, issuing the French franc. It does not translate its name to English, and thus calls itself ''Banque de F ...

and Ms Saskia de Vries from

De Nederlandsche Bank De Nederlandsche Bank (, , abbr. DNB) is the national central bank for the Netherlands within the Eurosystem. It was the Dutch central bank from 1814 to 1998, issuing the guilder. Since 2014, it has also been the country's national competent au ...

* TF “Capacity Building and Training”, co-chaired by Ms Madelena Mohamed from the

Central Bank of Malaysia The Central Bank of Malaysia (BNM; ; Jawi: ) is the Malaysian central bank. Established on 26 January 1959 as the Central Bank of Malaya (''Bank Negara Tanah Melayu''), its main purpose is to issue currency, act as the banker and advisor to the ...

and Mr Jeffery Yong from the

Bank for International Settlements The Bank for International Settlements (BIS) is an international financial institution which is owned by member central banks. Its primary goal is to foster international monetary and financial cooperation while serving as a bank for central bank ...

Climate scenarios

In June 2020, the NGFS presented its climate scenarios as a common baseline for analysing climate risks to the economy and the financial system. Expanded and updated data were published in the two subsequent years. The scenarios are based on the three integrated assessment models REMIND-

MAgPIE Magpies are birds of various species of the family Corvidae. Like other members of their family, they are widely considered to be intelligent creatures. The Eurasian magpie, for instance, is thought to rank among the world's most intelligent c ...

( Potsdam Institute for Climate Impact Research), GCAM (

University of Maryland The University of Maryland, College Park (University of Maryland, UMD, or simply Maryland) is a public land-grant research university in College Park, Maryland, United States. Founded in 1856, UMD is the flagship institution of the Univ ...

) and MESSAGEix-GLOBIOM ( International Institute for Applied Systems Analysis). Their results were fed into the NiGEM model (

National Institute of Economic and Social Research The National Institute of Economic and Social Research (NIESR), established in 1938, is Britain's oldest independent economic research institute. The institute is a London-based independent UK registered charity that carries out academic researc ...

) to conduct further

macroeconomic Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output/ GDP ...

analyses on inflation or unemployment. In addition, climate data provided by Climate Analytics and the

ETH Zurich ETH Zurich (; ) is a public university in Zurich, Switzerland. Founded in 1854 with the stated mission to educate engineers and scientists, the university focuses primarily on science, technology, engineering, and mathematics. ETH Zurich ran ...

are published.NGFS (ed): ''NGFS Climate Scenarios for central banks and supervisors''. September 2022
PDF
2,6 MB). NGFS Scenarios Portal
www.ngfs.net. Accessed October 8, 2022. Oliver Richters et al.
''NGFS Climate Scenario Database: Technical Documentation V3.1''
2022.Stefano Battiston, Yannis Dafermos, Irene Monasterolo: ''Climate risks and financial stability''. In: '' Journal of Financial Stability'', 54, 2021, 100867, doi:10.1016/j.jfs.2021.100867.Paul Langley, John H Morris: ''Central banks: Climate governors of last resort?'' In: ''EPA: Economy and Space'', 52(8), 2020, p. 1471–1479 doi:10.1177/0308518X20951809. The following six scenarios were examined: "Current Policies" considers only already implemented climate policies, while "NDCs" assumes that the voluntary pledges of Nationally Determined Contributions are met. "Below 2°C" assumes that a two-degree target in line with the

Paris Agreement The Paris Agreement (also called the Paris Accords or Paris Climate Accords) is an international treaty on climate change that was signed in 2016. The treaty covers climate change mitigation, adaptation, and finance. The Paris Agreement was ...

will be met, while "Net Zero 2050" assumes a 1.5-degree target will be achieved through early, globally coordinated climate policies. "Delayed Transition" assumes tighter climate policies only from 2030, while "Divergent Net Zero" envisages regionally and sectorally different climate adaptation.

Governance and membership

In 2020, the NGFS comprised 75 members and 13 observers. {, class="wikitable sortable" , +Members of the NGFS !Name !Membership !Join date !Withdrawal date , - , - , Banque de France and ACPR , Permanent member , 2017 , , - ,

, Permanent member , 2017 , , - ,

, Permanent member , 2017 , , - , Austrian Financial Market Authority , , , , - , Banco Central de Costa Rica , , 2019 , , - , Banca d’Italia , , , , - , Banco de México , Permanent member , , , - , Banco de España , , 2018 , , - , Banco de la República (Central Bank of Colombia) , , 2019 , , - , Banco de Portugal , , 2018 , , - , Bank Al-Maghrib , , 2018 , , - , Bank Indonesia , , 2019 , , - , Bank Negara Malaysia (Central Bank of Malaysia) , , 2018 , , - ,

Bank of Canada The Bank of Canada (BoC; ) is a Crown corporations of Canada, Crown corporation and Canada's central bank. Chartered in 1934 under the ''Bank of Canada Act'', it is responsible for formulating Canada's monetary policy,OECD. OECD Economic Surve ...

, , , , - , Bank of Finland , , 2018 , , - , Bank of Greece , , , , - ,

Bank of Israel The Bank of Israel (, ) is the central bank of Israel. The bank's headquarters is located in Kiryat HaMemshala in Jerusalem with a branch office in Tel Aviv. The current governor is Amir Yaron. The primary objective of the Bank of Israel is to ...

, , , , - , Bank of Japan , , 2019 , , - , Bank of Korea , , 2019 , , - , Bank of Mauritius , , 2020 , , - , Bank of Slovenia , , , , - , Bank of Thailand , , 2019 , , - , Banque Centrale de Tunisie , , 2019 , , - , Banque centrale du Luxembourg , , 2018 , , - , Bank of Estonia , , 2020 , , - , Bank of Latvia , , 2020 , , - , Bank of Lithuania , , 2020 , , - , Bank of Russia , , 2019 , , - , Bangko Sentral ng Pilipinas , , 2020 , , - , Central Bank of Brazil , , 2020 , , - , Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) , Permanent member , 2017 , , - , Bank of Mauritius , , , , - , Central Bank of Armenia , , 2020 , , - , Central Bank of Cyprus , , 2020 , , - , Central Bank of Hungary , , , , - , Central Bank of Malta , , , , - , Central Bank of Seychelles , , , , - , Central Bank of West African States , , 2020 , , - , Comision Nacional Bancaria y de Valores , , 2019 , , - , Comisión para el Mercado Financiero de Chile , , 2019 , , - , Commission de contrôle des activités financières (Monaco) , , , , - , Commission de Surveillance du Secteur Financier (Luxembourg) , , , , - , Danish Financial Supervisory Authority , , 2020 , , - , Danmarks Nationalbank , , , , - , Department of Financial Services (DFS) of the State of New York , , 2019 , , - , Deutsche Bundesbank , Permanent member , 2017 , , - , Dubai Financial Services Authority , , , , - , European Banking Authority (EBA) , , 2018 , , - , European Central Bank (ECB) , Permanent member , 2018 , , - , European Insurance and Occupational Pensions Authority (EIOPA) , , , , - , Federal Reserve Bank of the United States , Permanent member, withdrew Jan. 17, 2025 , 2020 , 2025 , - , Finansinspektionen (Swedish FSA) , Permanent member , 2017 , , - , Finanstilsynet (Norwegian FSA) , , , , - , Guernsey Financial Services Commission , , 2019 , , - , Isle of Man Financial Services Authority , , 2020 , , - , Istituto per la Vigilanza sulle Assicurazioni (IVASS) , , , , - , Hong Kong Monetary Authority , Founding member , 2017 , , - , Japan FSA , , 2018 , , - , Malta Financial Services Authority , , 2020 , , - , Monetary Authority of Singapore , Permanent member , 2017 , , - , Národná banka Slovenska , , 2019 , , - , National Bank of Belgium , , 2018 , , - , National Bank of Cambodia , , 2020 , , - , National Bank of Georgia , , 2020 , , - , National Bank of Romania , , , , - , Norges Bank , , 2018 , , - , Oesterreichische Nationalbank (OeNB) , , 2018 , , - , People's Bank of China , Permanent member , 2017 , , - , Reserve Bank of Australia , , 2018 , , - , Reserve Bank of New Zealand , , 2018 , , - , South African Reserve Bank , , , , - , Superintendencia Financiera De Colombia , , , , - , Sveriges Riksbank , , 2018 , , - , Swiss Financial Market Supervisory Authority (FINMA) , , , , - , Swiss National Bank , , , , - , Asian Development Bank , Observer , , , - , Bank for International Settlement , Observer , 2018 , , - , Basel Committee on Banking Supervision , Observer , , , - , European Bank for Reconstruction and Development , Observer , 2018 , , - , International Organization of Securities COmmission (IOSCO) , Observer , 2019 , , - , European Investment Bank , Observer , , , - , IDB (Inter-American Development Bank) , Observer , 2019 , , - , International Association of Insurance Supervisors , Observer , , , - , International Monetary Fund , Observer , 2019 , , - , NIB (Nordic Investment bank) , Observer , , , - , Organisation for Economic Cooperation and Development (OECD) , Observer , 2018 , , - , Sustainable Insurance Forum , Observer , 2018 , , - , World Bank and the International Finance Corporation , Observer , 2018 , , - ,

Reserve Bank of India Reserve Bank of India, abbreviated as RBI, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian rupee, Indian currency. Owned by the Ministry of Finance (India), Min ...

, Member , 2021 , , - , National Bank of Serbia , Member , 2021{{Cite web, title=ВЕЛИКИ УСПЕХ: Народна банка Србије на свој 137. рођендан постала део угледне мреже за "зелене" финансијске системе, url=https://www.novosti.rs/c/vesti/ekonomija/1012862/veliki-uspeh-narodna-banka-srbije-svoj-137-rodjendan-postala-deo-ugledne-mreze-zelene-finansijske-sisteme, access-date=2021-07-05, website=NOVOSTI, language=sr , , -

References

Finance industry associations Organizations established in 2017 Organizations based in Paris