By Joel Makower, Chairman & Executive Editor, GreenBiz Group
Just before Christmas, America’s central bank took a major step, albeit one long overdue: It recognized the threat that the climate crisis poses to the nation’s — and the world’s — financial system. It did that in part by becoming a member of the Network of Central Banks and Supervisors for Greening the Financial System, or NGFS.
The group, launched in 2017, aims “to enhance the role of the financial system to manage risks and to mobilize capital for green and low-carbon investments in the broader context of environmentally sustainable development.” That is, its goal is to help central banks and other regulatory bodies exchange ideas and research on how to mitigate climate risk within banks and other financial systems. NGFS membership has grown from eight central banks three years ago to 83 banks across five continents, from Canada to Colombia to Cambodia. That the United States has joined is no small change. Read more here.