Capacity Building Workshop on Central Banks’ Role in Monitoring Financed Emissions for Financial Stability

Time of Event

Day 1: 09:15–16:30 Tokyo time
Day 2: 09:15–16:30 Tokyo time

Summary

This second capacity building workshop of the ADBI-ADB Asian Climate Finance Dialogue aims to promote policy actions by governments, financial regulators, and central banks and deepen understanding of climate-related information disclosure to scale up climate finance while ensuring financial sustainability.

With growing awareness of climate risks, there is a global consensus that central banks and financial regulators should view climate risks as major financial risks. Many central banks and financial regulators have already begun to consider climate-related financial risks and perform climate scenario analyses and/or climate stress tests for major banks and insurance companies.

At the same time, the importance of understanding and monitoring commercial banks’ financed emissions beyond such analyses is being increasingly recognized. Important global entities, such as the International Sustainability Standards Board (ISSB) and the Basel Committee on Banking Supervision (BCBS) have also stressed the importance of the disclosure of financed emissions to promote commercial banks’ actions to decarbonize their portfolios. As commercial banks begin to disclose financed emissions data and monitor them by setting targets, central banks can play a crucial role in achieving financial stability by designing appropriate regulations.

As countries take greater action to reduce greenhouse gas (GHG) emissions, they can support companies, banks, and other financial institutions to disclose GHG emissions data and other climate-related information based on global standards, including the ISSB climate-related disclosure standards. The BCBS has also issued a consultation paper on a Pillar 3 disclosure framework for climate-related financial risks based on ISSB standards.

Against this backdrop, the 2-day capacity building workshop will focus on the role of central banks in monitoring commercial banks’ financed emissions. It aims to build an understanding of the measurement of GHG emissions from corporates, the associated financed emissions, and recent trends in global disclosure standards and approaches for banks’ financed emissions. 

Objectives

• Raise awareness of the role of central banks in supporting banks and other financial institutions to better understand their climate-related financial risks and improve their risk management strategies
• Strengthen the capacities of central bankers and regulatory agencies’ officers to design regulatory frameworks and use instruments to better monitor financed emissions 
• Promote appropriate policy actions by governments and financial supervisors and regulators to scale up climate finance while ensuring financial stability

Target Participants

Output

• Enhanced understanding of the importance of central banks’ role in promoting the reduction of GHG emissions and scaling up climate finance while ensuring financial stability in the long run
• Networking and exchange on good practices

How to Register

By invitation or prior arrangement with ADBI

Partner

Asian Development Bank (ADB)