Scenarios for central banks and supervisors

Link to press release.

Link to NGFS scenarios portal.

The Central Banks and Supervisors Network for Greening the Financial System (NGFS) is a group of Central Banks and Supervisors willing, on a voluntary basis, to exchange experiences, share best practices, contribute to the development of environment and climate risk management in the financial sector, and to mobilize mainstream finance to support the transition toward a sustainable economy.

In this third vintage, the NGFS scenarios have been brought up to date, including the most recent country-level climate commitments made at the COP26 in 2021, and the latest GDP and population pathways. For the first time, the NGFS scenarios include projections of the potential losses from extreme weather events (floods and tropical cyclones), in addition to the specific impacts of chronic climate changes on the macroeconomy. The NGFS scenarios are also consistent with the scenarios assessed in the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC). Owing to the lead time required for their completion, the NGFS scenarios could not account for the consequences of the war in Ukraine and the current energy crisis. Yet, they remain informative about the current situation, illustrating the challenges as well as the feasibility and benefits from carrying on with the net zero transition.