BoC makes pledge to create a green financial system

by Steve Randall28 Mar 2019

The Bank of Canada has signed up to a global initiative to define and promote the best practices in climate risk management and green finance.

It means that Canada’s central bank will join with others around the world to protect economies and the environment amid the increasing threat of climate change.

The Central Banks’ and Supervisors’ Network for Greening the Financial System (NGFS) was founded following the Paris Agreement on climate change and currently has more than 30 members.

“The importance of climate-related issues for financial stability and monetary policy have become increasingly clear,” said BoC governor Stephen Poloz. “This is particularly true for Canada, where resources play a vital role in our economy and where the natural environment is a defining feature of our national identity. Joining this network is part of the Bank’s broader efforts to understand climate-related risks for the Canadian economy and financial system.”

Joining NGFS is the latest step by the BoC to focus on climate-related issues along with:

  • building climate-related risks into the Bank’s financial system review process—and highlighting that work on our Financial System Hub;
  • continuing to green the Bank’s operations—including pursuing Leadership in Energy and Environmental Design (LEED) certification, energy and waste reduction, and carbon disclosure; and
  • developing a multi-year research plan focused on climate-related risks to the macroeconomy and financial system.

The importance of #climate-related issues for financial stability and monetary policy have become increasingly clear. We look forward to working with our fellow members of the Network for Greening the Financial System. 🍃🌎 #greenfinance #cdnecon

— Bank of Canada (@bankofcanada) March 27, 2019

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