Survey on Monetary Policy Operations and Climate Change: Key Lessons from Further Analysis

As the NGFS evaluates central bank preparedness for climate change they reviewed 107 central banks to consider their institutional frameworks and features of their balance sheet. A formal survey concerning climate change preparedness was conducted where 26 central banks representing 51 countries showed increasing and shared awareness of climate-related risks facing the financial system. The NGFS indicates that all central banks find climate change to be a challenge. Additional key observations from the survey indicate: a majority of central banks view climate change as being in the scope of issues considered in their operational framework; central banks are mainly incentivized to address climate change as part of a mitigation strategy to curb the impact of climate-related risks on their balance sheets; central banks substantiate taking adoptive measures in order to support a smooth transition to a low-carbon economy and a smooth monetary transition over the long-term; and central banks see international coordination as key to effectively integrating climate-related risks into their balance sheets.