Media Releases
Published Date: 26 April 2023

Network of Central Banks and Supervisors Meet in Singapore to Discuss Greening the Financial System

Singapore, 26 April 2023… The Network of Central Banks and Supervisors for Greening the Financial System (NGFS) held a series of meetings in Singapore on 25 and 26 April 2023 to discuss issues related to the assessment and management of climate-related financial risks and transition financing for a more sustainable economy. The meetings were hosted by the Monetary Authority of Singapore (MAS) and chaired by Mr Ravi Menon, Managing Director, MAS and Chair of the NGFS.

2. The NGFS Annual Plenary Meeting on 25 April 2023 brought together in person and virtually its 144 member institutions and observers to discuss the progress of its workplan in the past year as well as upcoming deliverables. Members discussed climate scenarios and vulnerability assessments of the financial sector, the implications of climate change for monetary policy, the role of supervisors with respect to transition planning by financial institutions, central banks’ net zero strategies, and training and capacity building.

3. The NGFS also conducted its Plenary Outreach with Asia-Pacific members, which discussed identifying and managing climate-related financial risks in the region and facilitating financing flows to support Asia’s transition. The group recognized the critical role of Asia in the global transition toward net zero, underscored the importance of climate scenario analysis and the stewardship role of financial institutions in their clients’ transition plans.

4. On 26 April 2023, the NGFS held a full-day Workshop for more than 160 participants, including NGFS members, and bringing together speakers from across the Network, the financial sector and academia. Participants discussed how central banks and supervisors could further support the following areas:

  • Blended Finance: Participants discussed the role of public-private partnerships through blended finance in supporting the transition to net zero and climate adaptation. They also discussed the need to broaden the investor base, grow local financing capacity, scale up cross border private capital flows into blended finance projects, and the importance of credible data and disclosures to measure impact.
  • Macroeconomics of Climate Change: Participants discussed the implications of climate change on financial market pricing, macroeconomic modelling, and monetary policy. This included the challenges in estimating the impact of climate change on macroeconomic variables such as inflation, and the limits of economic models in capturing the significant uncertainties in future climate events.

  • Nature-related Risks: Participants discussed the early findings by the NGFS Taskforce on Biodiversity Loss and Nature-Related Risks, including progress in assessing such risks, the interconnectedness of climate and nature-related risks, as well as challenges faced by financial institutions in measuring and managing these risks. There were also discussions on potential future work, including bridging data gaps and scenario analysis of biodiversity loss.
  • Transition Planning: Participants discussed the importance of transition planning by financial institutions to manage risks from both micro- and macroprudential perspectives. They emphasised the role of financial institutions in stewarding the real economy to transition towards net zero, as opposed to simply divesting and de-risking. Discussion on future work touched on the need to build capacity among central banks and supervisors to effectively engage financial institutions on their transition planning processes and to better understand the regional and domestic contexts of transition pathways and adaptation efforts.

5. Mr Menon said “The rich discussions at the NGFS over the past two days is testimony to the progress made by the global community of central banks and supervisors in working with the financial industry to manage climate-related financial risks and supporting an effective transition to a net zero economy. Of course, much work remains to be done. MAS is committed to working collaboratively with fellow central banks and supervisors in the NGFS in our common vision to green the financial system for a sustainable planet.” 

6. For more information on the NGFS, please visit . Mr Menon’s opening remarks at the NGFS Workshop on 26 April can be found here .