NGFS welcomes the Bank of England’s climate-risk policy changes

Paris, December 7th 2020

The Network for Greening the Financial System (NGFS) collectively supports the Bank of England’s announcement that it will screen and exclude carbon-intensive sectors from its Corporate Bond Purchase Scheme (CBPS). The decision stands as a first step to enable the Bank to reduce its own exposure to climate risk, and to start aligning funds with the emissions targets governments are committed to via the Paris Agreement.

The Network for Greening the Financial System collectively acknowledges that because climate change presents significant risks to global financial stability, central banks have an obligation to take measures to prevent foreseeable economic disruption. The Bank of England’s announcement to align its bond purchase programs with a 1.5°C scenario is an important step towards a safe future where climate risks are adequately addressed. On the 8th of July 2020, the NGFS argued in its “Statement on the need for green recovery out of Covid-19 crisis” that even under current circumstances we should not lose sight of the fact that climate change and environmental issues remain as urgent and vital as ever.

The NGFS applauds the Bank of England for taking great strides toward greening its operations and investments, and looks forward to other central banks following in step with these forward-thinking corrections.

For more details, contact the NGFS Secretariat at Banque de France sec.ngfs@banquefrance-ngfs.fr

See original release here.