Bank of Israel Governor Prof. Amir Yaron said in a statement on Monday that he welcomes “the Bank of Israel’s accession to the Network of Central Banks and Supervisors for Greening the Financial System (NGFS),” and noted that “membership in the organization is a direct continuation of the central bank’s commitment to raise awareness and promote study and research in the field in Israel.”
NGFS was established in Paris in December 2017. As of December 2020, 83 central banks and supervisory authorities from various countries around the world are members, and 13 international economic and financial organizations serve as observers. The organization’s objective is to help to strengthen the global response required to meet the goals of the Paris agreement and to enhance the role of the financial system to manage risks and to mobilize capital for green and low-carbon investments in the broader context of environmentally sustainable development. The Network defines and promotes best practices in the field of climate risk management for the financial system, and conducts or commissions analytical work on green finance.
Israel’s Supervisor of Banks Yair Avidan said: “All of us are obligated to get involved in the global struggle to reduce the effects of climate risks, and market mechanisms on their own cannot bring about the desired change. As such, international and intercontinental involvement and cooperation are necessary between government, regulatory, and business sector players to implement an advanced policy to deal with climate risks. The banking system and the Banking Supervision Department are also taking part in this important task, and will continue to do so when the initial steps toward future regulation are taken.”
The Bank of Israel’s economists and researchers will participate in the organization’s plenary work and workgroups.