Egyptian CBE and Bank of England hold 3-day workshop on tackling climate change – Economy – Business

The Central Bank of Egypt (Photo: Al-Ahram)

The workshop is part of a technical cooperation program funded by the UK government, through which staff from the Bank of England will share UK experience on the analysis, management and understanding of the effects of climate change on financial enterprises and the stability of the financial system.

It will also build on the work of the Network for Greening the Financial System (NGFS) which brings together 116 central banks and financial supervisors from around the world, including the CBE, to develop recommendations and share best practices in tackling climate change. climatic.

Sarah Breeden, who leads the Bank of England’s work on climate change and has been a member of the NGFS Steering Group since its inception in 2017, will open the event.

In May, the Bank of England published the results of its Biennial Climate Exploratory Scenario (CBES), which explores the financial risks posed by climate change for the largest banks and insurers operating in the UK.

Part of the workshop will be to share key findings and insights from the exercise, allowing the CBE to better understand how climate risks are being managed elsewhere.

“I am delighted to see this latest step in our climate cooperation with Egypt, as our central banks come together to discuss how to tackle the economic effects of climate change. It is an essential part of the conversation. If we are to deliver on the commitments agreed at COP26 under the Glasgow Climate Pact, we must consider smart and creative responses to the financial risks posed by climate change.The Bank of England has leading expertise in this domain, and I am proud that we are working with our Egyptian partners to share our experience and contribute to the success of COP27,” said Gareth Bayley, British Ambassador to Egypt.

For her part, May Abulnaga, First Deputy Governor of the CBE, said that climate change is one of the most important areas of sustainable finance.

She noted that this has brought about new types of risks that should be taken into account, adding that the transition to low-carbon economies must be gradual and well-informed to ensure financial and banking stability, as banks will play a active role in facilitating this transition.

“The Bank of England is a pioneer in climate finance and has continuously supported the Central Bank of Egypt in building its capacity to deal with these risks. We look forward to our future cooperation to develop more sustainable economies,” Abulnaga said.

“The challenges posed by climate change are very significant, and if we are to successfully address them, we will need to share expertise between institutions. This climate scenario analysis workshop that we are conducting is a concrete example of the necessary international cooperation. Bank of England staff have a strong commitment to scenario analysis, modeling the resulting financial risks and integrating climate change into our supervisory approach. We look forward to sharing some of our expertise with our partners at the Central Bank of Egypt,” said Sarah Breeden, Executive Director of Financial Stability and Risk Strategy at the Bank of England.

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