The European Central Bank has joined a network of central banks designed to help increase the role of green financing in the global economy, according to a statement by France's central bank, the Banque de France.
The network, created in December 2017, is looking at ways of managing environmental and climate risk in the financial sector and supporting banks as they increase their lending to environmentally friendly projects such as solar energy installations and wind power farms.
"Given the direct implications that environmental risks and the transition to a sustainable economy could have for financial regulation and financial stability more generally, it is very valuable for the ECB to join the NGFS [Central Banks and Supervisors Network for Greening the Financial System] and actively contribute to its work going forward," ECB President Mario Draghi said.
The ECB was joined by the central banks of Morocco, Spain and Austria.
Other members include Banco de México, the Bank of England, the Banque de France, and its banking supervisor, the Autorité de Contrôle Prudentiel et de Résolution, the Dutch and German central banks, Sweden's Financial Supervisory, Germany's Financial Supervisory Authority, the Monetary Authority of Singapore and the People's Bank of China.
