NGFS presents an overview of sustainable finance market dynamics along with a dashboard on scaling up green finance and publishes its Annual Report

Paris, March 31^st 2021

NGFS presents an overview of sustainable finance market dynamics along with a dashboard on scaling up green finance and publishes its Annual Report

Today, the NGFS released a report entitled “Sustainable Finance Market Dynamics: an overview”. It presents an overview of the market dynamics for mobilizing sustainable finance and identifies three main channels through which financial markets can help steer the necessary transformation of the real economy towards higher levels of sustainability: disclosure, risk management, and the mobilization of capital. Hence, the report provides key takeaways on the need for improvement for further consideration by policymakers and market participants.

The NGFS also released a “Dashboard on scaling up green finance”. It is a first attempt to catalogue desirable series that allow the evolution, change and trend of a phenomenon (rather than its absolute level to be analysed). It contains a set of 21 indicators tracking the greening of national financial systems. While presented at an aggregate level, the dashboard is intended for use at the jurisdictional level. To this end, metadata describe the country coverage and provide sources where these data can be found.

Frank Elderson, Chair of the NGFS and member of the ECB’s Executive Board: “With its new report on Sustainable Market Dynamics the NGFS gives examples of policies, regulations and guidance on how financial markets can support the transformation of our economies to align with the goals of the Paris Agreement with an increasing number of jurisdictions now committed to achieving net zero emissions by mid-century. As we are moving closer to the recovery of the pandemic, more than ever the time to act is now.”

Dr Sabine Mauderer, Chair of the NGFS’ “Scaling up green finance” workstream and executive board member of the Deutsche Bundesbank: “Our new NGFS dashboard is a great tool to analyse and track the greening of the financial system. Mobilizing more capital for green projects and technologies is essential for the transition to net zero.”

Rafael Del Villar Alrich, co-Chair of the subgroup on market dynamics and Chief Advisor to the Governor of Banco de México: “Financial markets are essential to the solution of the climate crisis by integrating information and analysis on opportunities and risks and by fostering mobilization towards sustainable activities. In this report the NGFS looks at how investors, banks, capital markets and the ecosystem of data and service providers are starting to impact the real economy and on how financial authorities can support these global market developments.”

NGFS annual report

Today, the NGFS released its annual report for 2020. It provides a detailed overview of the various steps taken by the Network in 2020 and lists in particular all the highlights of the year.

Upcoming publications

The NGFS will continue to leverage the best practices identified within its membership to help central banks and supervisors, as well as the relevant stakeholders, to better assess and mitigate climate-related risks. In particular, the NGFS plans to publish an updated set of climate reference scenarios in the coming months -accompanied by a NGFS presentation and technical documentation-, as well as an interim report on the topic of ‘data gaps’.

About the NGFS

The NGFS, launched at the Paris One Planet Summit on 12 December 2017, is a group of central banks and supervisors, which on a voluntary basis are willing to share best practices and contribute to the development of environment and climate risk management in the financial sector, and to mobilize mainstream finance to support the transition toward a sustainable economy. The NGFS brings together 89 central banks and supervisors and 13 observers. Together, they represent five continents and around 75% of global greenhouse gas emissions, and are responsible for the supervision of all of the global systemically important banks and two thirds of global systemically important insurers. The NGFS is chaired by Frank Elderson, member of the ECB’s Executive Board. The Secretariat, headed by Morgan Després, is provided by Banque de France.

For more details, visit the NGFS website and Twitter account or contact the NGFS Secretariat at Banque de France sec.ngfs@banque-france.fr