The Network for Greening the Financial System (NGFS) is a network of 114 central banks and financial supervisors that aims to accelerate the scaling up of green finance and develop recommendations for central banks' role for climate change. The NGFS was created in 2017 and its secretariat is hosted by the Banque de France. Its current chair is Ravi Menon, Managing Director of the Monetary Authority of Singapore. The NGFS has been awarded best green initiative of the year 2020 by Centralbanking.com.

According to its charter, the purpose of the NGFS is "to define, promote and contribute to the development of best practices to be implemented within and outside of the Membership of the NGFS and to conduct or commission analytical work on green finance."

The NGFS was announced at the Paris "One Planet Summit" in December 2017. The network was launched by 8 founding central banks, under the leadership of Banque de France's governor François Villeroy de Galhau, the Dutch Central Bank's Frank Elderson and the Bank of England's former governor Mark Carney.

Work and activities The NGFS organises events and research on climate change.

Recommendations for central banks and supervisory authorities

In 2021, the NGFS identified 9 policy options that could be chosen by central banks to align their monetary policy with climate objectives.

The NGFS work is currently organised around 4 workstreams (WS) and 2 task forces (TF):

WS "Supervision", chaired by Mr Tolga Yalkin from the Office of the Superintendent of Financial Institutions WS "Scenario Design and Analysis", chaired by Mr Livio Stracca from the European Central Bank WS "Monetary Policy", chaired by Mr James Talbot from the Bank of England WS "Net Zero for Central Banks", co-chaired by Mr Paolo Angelini from the Bank of Italy and Ms Simone Robbers from the Reserve Bank of New Zealand TF "Nature-Related Risks", co-chaired by Ms Emmanuelle Assouan from the Bank of France and Ms Saskia de Vries from De Nederlandsche Bank TF "Capacity Building and Training", co-chaired by Ms Madelena Mohamed from the Central Bank of Malaysia and Mr Jeffery Yong from the Bank for International Settlements

Climate scenarios

In June 2020, the NGFS presented its climate scenarios as a common baseline for analysing climate risks to the economy and the financial system. Expanded and updated data were published in the two subsequent years. The scenarios are based on the three integrated assessment models REMIND-MAgPIE (Potsdam Institute for Climate Impact Research), GCAM (University of Maryland) and MESSAGEix-GLOBIOM (International Institute for Applied Systems Analysis). Their results were fed into the NiGEM model (National Institute of Economic and Social Research) to conduct further macroeconomic analyses on inflation or unemployment. In addition, climate data provided by Climate Analytics and the ETH Zurich are published.NGFS (ed): NGFS Climate Scenarios for central banks and supervisors. September 2022 (PDF, 2,6 MB). NGFS Scenarios Portal. www.ngfs.net. Accessed October 8, 2022. Oliver Richters et al.: NGFS Climate Scenario Database: Technical Documentation V3.1, 2022.Stefano Battiston, Yannis Dafermos, Irene Monasterolo: Climate risks and financial stability. In: Journal of Financial Stability, 54, 2021, 100867, doi:10.1016/j.jfs.2021.100867.Paul Langley, John H Morris: Central banks: Climate governors of last resort? In: EPA: Economy and Space, 52(8), 2020, p. 1471–1479 doi:10.1177/0308518X20951809.

The following six scenarios were examined: "Current Policies" considers only already implemented climate policies, while "NDCs" assumes that the voluntary pledges of Nationally Determined Contributions are met. "Below 2°C" assumes that a two-degree target in line with the Paris Agreement will be met, while "Net Zero 2050" assumes a 1.5-degree target will be achieved through early, globally coordinated climate policies. "Delayed Transition" assumes tighter climate policies only from 2030, while "Divergent Net Zero" envisages regionally and sectorally different climate adaptation.

Governance and membership In 2020, the NGFS comprised 75 members and 13 observers. +Members of the NGFSNameMembershipJoin dateWithdrawal dateBanque de France and ACPRPermanent member2017Bank of EnglandPermanent member2017De Nederlandsche BankPermanent member2017Austrian Financial Market AuthorityBanco Central de Costa Rica2019Banca d'ItaliaBanco de MéxicoPermanent memberBanco de España2018Banco de la República (Central Bank of Colombia)2019Banco de Portugal2018Bank Al-Maghrib2018Bank Indonesia2019Bank Negara Malaysia (Central Bank of Malaysia)2018Bank of CanadaBank of Finland2018Bank of GreeceBank of IsraelBank of Japan2019Bank of Korea2019Bank of Mauritius2020Bank of SloveniaBank of Thailand2019Banque Centrale de Tunisie2019Banque centrale du Luxembourg2018Bank of Estonia2020Bank of Latvia2020Bank of Lithuania2020Bank of Russia2019Bangko Sentral ng Pilipinas2020Central Bank of Brazil2020Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)Permanent member2017Bank of MauritiusCentral Bank of Armenia2020Central Bank of Cyprus2020Central Bank of HungaryCentral Bank of MaltaCentral Bank of SeychellesCentral Bank of West African States2020Comision Nacional Bancaria y de Valores2019Comisión para el Mercado Financiero de Chile2019Commission de contrôle des activités financières (Monaco)Commission de Surveillance du Secteur Financier (Luxembourg)Danish Financial Supervisory Authority2020Danmarks NationalbankDepartment of Financial Services (DFS) of the State of New York2019Deutsche BundesbankPermanent member2017Dubai Financial Services AuthorityEuropean Banking Authority (EBA)2018European Central Bank (ECB)Permanent member2018European Insurance and Occupational Pensions Authority (EIOPA)Federal Reserve Bank of the United StatesPermanent member, withdrew 17 January 202520202025Finansinspektionen (Swedish FSA)Permanent member2017Finanstilsynet (Norwegian FSA)Guernsey Financial Services Commission2019Isle of Man Financial Services Authority2020Istituto per la Vigilanza sulle Assicurazioni (IVASS)Hong Kong Monetary AuthorityFounding member2017Japan FSA2018Malta Financial Services Authority2020Monetary Authority of SingaporePermanent member2017Národná banka Slovenska2019National Bank of Belgium2018National Bank of Cambodia2020National Bank of Georgia2020National Bank of RomaniaNorges Bank2018Oesterreichische Nationalbank (OeNB)2018People's Bank of ChinaPermanent member2017Reserve Bank of Australia2018Reserve Bank of New Zealand2018South African Reserve BankSuperintendencia Financiera De ColombiaSveriges Riksbank2018Swiss Financial Market Supervisory Authority (FINMA)Swiss National BankAsian Development BankObserverBank for International SettlementObserver2018Basel Committee on Banking SupervisionObserverEuropean Bank for Reconstruction and DevelopmentObserver2018International Organization of Securities COmmission (IOSCO)Observer2019European Investment BankObserverIDB (Inter-American Development Bank)Observer2019International Association of Insurance SupervisorsObserverInternational Monetary FundObserver2019NIB (Nordic Investment bank)ObserverOrganisation for Economic Cooperation and Development (OECD)Observer2018Sustainable Insurance ForumObserver2018World Bank and the International Finance CorporationObserver2018Reserve Bank of IndiaMember2021National Bank of SerbiaMember2021

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