International organisations including the UN-convened Sustainable Insurance Forum (SIF) and Bank for International Settlements (BIS) have united to create the Central Banks’ and Supervisors’ Climate Training Alliance (CTA) ahead of COP26.
The CTA aims to expand the availability of training resources for authorities responding to climate risks, by bringing together authorities already working on solutions to climate risk management so they can share their experiences and best practices with the central banking and supervisory community.
The International Association of Insurance Supervisors (IAIS) and the Central Banks and Supervisors Network for Greening the Financial System (NGFS) complete the line-up of CTA organisations, which has been coordinated under climate finance adviser Mark Carney’s (pictured) COP26 agenda.
By sharing resources, through tutorials, handbooks, guidance and standards, authorities will be able to integrate the climate risk management into their activities, including banking and insurance supervision, scenario analysis, monetary policy and portfolio management.
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There will also be access to training provided by financial authorities and members of the NGFS starting with Bank of England, Banque de France, De Nederlandsche Bank, European Central Bank, and the Monetary Authority of Singapore.
It is hoped the collaboration will support central banks and supervisory communities in on managing climate risks – both physical risks from climate change itself and risks associated with the transition to net-zero. The training will also be made available to emerging and developing economies.
COP26 adviser and UN Special Envoy for Climate Action and Finance Carney commented: “We need to share knowledge, refine and improve the approach to climate risk management. To this end, the BIS, NGFS, IAIS and Sustainable Insurance Forum’s new Central Banks’ and Supervisors’ Climate Training Alliance (CTA) will help build capacity in central banks, improving the efficiency, effectiveness and accessibility of climate risk training and knowledge-sharing for these institutions. It will provide training across supervision of climate risks, climate scenario analysis, and how to reflect climate in collateral management, ensuring the financial sector has the knowledge and tools to effectively measure and manage climate risks by COP26 and beyond.”
Frank Elderson, chair of the Central Banks and Supervisors Network for Greening Financial System & executive board member at the European Central Bank, added: “Our knowledge of how physical and transition risks are impacting the financial system is continuously evolving. Thus, an effective management of these risks requires a continuous updating of practical knowledge and expertise. The Climate Training Alliance to which the NGFS is proud to contribute will be a key enabling force for central banks, supervisors and regulators to build and maintain capacity to address the climate and environmental crises.”
