The Central Bank of Egypt and the Bank of England collaborate to discuss the ongoing climate crisis through a series of workshops.
In light of the long-awaited COP27 happening this November in Egypt, the two-banks will be meeting to discuss the risks regarding climate change and its impact on financial firms and the global economies.
“The challenges posed by climate change are very significant, and if we are to address them successfully we will need to share expertise across institutions. This Climate Scenario Analysis Workshop we are carrying out is a practical example of the international cooperation needed,” said Sarah Breeden, Executive Director for Financial Stability Strategy and Risk at the Bank of England.
The discussions will take place in the form of a three-day workshop, through which Bank of England’s staff will share their analysis skills regarding the financial impact of the climate crisis. Their contributions come as part of a technical cooperation scheme funded by the UK Government.
“This is a vital part of the conversation. If we are to deliver on the commitments agreed at COP26 as part of the Glasgow Climate Pact, we need to consider smart and creative responses to the financial risks posed by the changing climate. The Bank of England has world- leading expertise in this area, and I am proud that we are working with our Egyptian partners to share our experience and help deliver a successful COP27,” said Gareth Bayley, British Ambassador to Egypt.
The workshop will also be presenting key insights from England’s Climate Biennial Exploratory Scenario (CBES), which analysed the threats that could be faced by the largest banks and insurers operating in the UK as a result of climate change. These findings will be useful for showing the Central Bank of Egypt how climate risks are being tackled in the UK.
It will also be addressing the work of the Network for Greening the Financial System (NGFS), a network of 116 global central banks and financial supervisors advocating for green finance, to develop recommendations for central banks’ role for climate change.
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