Central bank governors urged to integrate climate risks , opportunities into monetary policies
Ghana’s Minister for Finance, Dr Mohammed Amin Adam, has charged central bank governors to integrate climate risks and opportunities into monetary policies and financial regulation practices, to fortify economies against climate-induced vulnerabilities and catalysing a transition to a green and climate resilient economy.
According to him, our central banks are uniquely positioned to lead this transition by embedding climate risk assessments into our macroeconomic frameworks.
The Minister, who is also Chair of the V20, said these in his opening remarks at the V20 Finance Ministers and Central Bank Governors Working Group meeting at the ongoing World Bank/IMF Spring Meetings in Washington.
The meeting, which is the inaugural one of this group after its establishment in 2023, brought together Finance Ministers and Governors of central banks of the V20 Group chaired by Ghana.
They among other things deliberated on climate risks and solutions opportunities, such as a Global Shield Liquidity and Capital Facility (GS-LCF) to prevent local economies from collapsing after a natural disaster, by providing hard currency liquidity commitments (via central banks and local financial institutions). This will ensure that local SMEs and local households can access liquidity quickly and efficiently.
He underscored the interlinkages between climate change and economic policy which when ignored could lead to dire consequences for countries, hence the need to integrate climate risks and opportunities into monetary and economic policies.
Later in the day, Dr Amin Adam, also chaired the V20 Ministerial Dialogue on, “Unlocking Growth and Prosperity through Innovations in Climate Finance and Debt”
In his opening remarks, he pointed out that V20 countries should not lose sight of the unparallel opportunities for innovation, resilience, and collective action, despite the unprecedented climate challenges being experienced worldwide.
“I am acutely aware of the responsibility that rests on our shoulders. The Vulnerable Twenty Group, representing economies disproportionately impacted by climate change, stands at the forefront of advocating not just to survive, but to thrive, in the face of these adversities.”
This dialogue brought together V20 Finance Ministers, G20 Finance Ministers, private sector, bilateral donors, and philanthropies as well as H.E. Mohamed Nasheed Secretary-General of the Climate Vulnerable Forum, and former President of Maldives.
Among other things the dialogue was aimed at building support across all stakeholders for official recognition by the IMF for V20 as an official inter-governmental group and build consensus on implementation opportunities of the Climate Prosperity Plans.
