The NBU has acquired membership in the Network for Greening the Financial System (NGFS). The NGFS is a community that unites central banks and supervisors from around the globe. This network is intended for exchange of experience and expansion of research into making the financial system more environmentally friendly (i.e. greening it).
Environmental protection issues are a concern to all modern financial regulators. Given how significantly the financial market impacts all sectors of the economy, central banks seek to lead the way in implementing progressive approaches and improving the environment at their level.
That is precisely why the NBU has made it one of its current priorities to implement regulatory practices that significantly mitigate environmental and social risks to the economic system.
Membership in the NGFS will allow the NBU to exchange experience and research on greening the financial system with regulators who have already made significant progress in this regard. Participation in task force meetings will help draw attention to the problems of greening the financial system, both at the NBU and by other participants of Ukraine’s financial market.
“We believe that the significant public interest in the NBU’s activities is an advantage that we should use to promote environmental protection ideas. Keeping abreast with the times requires that we care about the environment and take a comprehensive approach to implementing the principles of environmental friendliness and social responsibility in the financial system. The more coordinated the actions of the international community of central banks are, the sooner these issues will be introduced into regulatory practice as their integral elements,” said Volodymyr Kuchyn, Head of the Office for European Integration and International Programs at the NBU.
The NGFS was established on 12 December 2017 as a group of central banks and supervisors that volunteered to share experience and best practices to develop effective climate and environmental risk management systems. The NGFS has 87 members and 13 observers.
The NGFS pursues the goal of accumulating efforts and attracting public attention in order to meet the objectives of the Paris Agreement and strengthen the role of the financial system in managing risk and mobilizing capital for green investments. To that end, the NGFS identifies best practices in this area, promotes them, and conducts active research on the problems and prospects of the green economy.
The NGFS has five task forces, which are working on micro-prudential regulation and supervision, the impact of climate risks on macrofinancial stability, increasing green finances, reducing the information gap, and research