Climate Change And Central Bank Policy Training Course

Introduction

Climate change poses significant risks to global financial stability, with profound implications for central banks and the broader economy. Physical risks from extreme weather events and transition risks arising from the shift to a low-carbon economy affect asset valuations, credit markets, and economic growth. Central banks are increasingly integrating climate considerations into their mandates, leveraging monetary policy, financial regulation, and market operations to support sustainable economic transitions while safeguarding financial stability.

The Climate Change and Central Bank Policy course explores the intersection of climate risk and central banking. It equips participants with the knowledge and tools to understand and address climate-related financial risks, develop green monetary policies, and promote sustainable finance. Through case studies and policy analysis, this course highlights best practices for integrating climate considerations into central bank strategies, fostering resilience in the face of environmental and economic challenges.

Target Audience

This course is tailored for:

• Central Bank Officials: Policymakers, economists, and market operations leaders.
• Regulators and Supervisors: Professionals overseeing climate-related financial risks in banks and financial institutions.
• Financial Market Participants: Stakeholders involved in green finance and sustainable investments.
• Economists and Analysts: Researchers studying the macroeconomic impacts of climate change.
• Sustainability and ESG Professionals: Experts driving the integration of environmental considerations into financial systems.

Course Objectives

By the end of this course, participants will:

Understand Climate-Related Financial Risks

• Explore physical and transition risks and their impact on the financial system.
• Analyze climate risk transmission channels to financial markets and institutions.

Incorporate Climate Considerations into Monetary Policy

• Learn how climate change affects price stability and monetary policy frameworks.
• Develop strategies to incorporate climate risks into monetary policy decisions.

Promote Sustainable Finance

• Explore the role of central banks in fostering green bond markets and ESG investments.
• Support the development of climate-resilient financial instruments.

Strengthen Climate Risk Supervision

• Develop frameworks for assessing and managing climate-related risks in financial institutions.
• Integrate stress testing and scenario analysis for climate resilience.

Align with International Climate Frameworks

• Understand the role of central banks in achieving global climate goals, such as the Paris Agreement.
• Explore initiatives like the Network for Greening the Financial System (NGFS).

Prepare for Emerging Climate and Financial Challenges

• Anticipate future trends in climate risk and their implications for central banking.
• Foster collaboration between central banks, governments, and financial institutions for sustainable outcomes.

This course equips central bankers, policymakers, and financial professionals to address the challenges posed by climate change, ensuring resilient and sustainable financial systems while contributing to global climate goals.

Module 1: Introduction to Climate Change and Central Banking

• The economic and financial implications of climate change.
• Why central banks should integrate climate considerations into their mandates.
• Overview of global climate frameworks (e.g., Paris Agreement).

Module 2: Climate-Related Financial Risks

• Physical risks from extreme weather and natural disasters.
• Transition risks from the shift to a low-carbon economy.
• Risk transmission channels in financial markets and institutions.

Module 3: Climate Risk and Monetary Policy

• The impact of climate change on inflation, growth, and interest rates.
• Adapting monetary policy tools to address climate risks.
• Case studies on central banks incorporating climate in policy decisions.

Module 4: Green Finance and Sustainable Investments

• The role of central banks in fostering green bond markets.
• ESG (Environmental, Social, and Governance) criteria in portfolio management.
• Supporting financial markets for climate-resilient investments.

Module 5: Stress Testing for Climate Risks

• Climate-related stress testing methodologies.
• Scenario analysis for physical and transition risks.
• Using stress test results to inform policy actions.

Module 6: Supervision and Regulation of Climate Risks

• Climate-related disclosure requirements for financial institutions.
• Integrating climate risks into prudential supervision.
• Aligning with global standards for climate risk management.

Module 7: Central Bank Digital Currencies (CBDCs) and Climate Policy

• Linking CBDCs to green financial initiatives.
• Reducing carbon footprints in payment systems.
• Leveraging digital currencies for climate-related projects.

Module 8: The Role of Central Banks in Carbon Markets

• Supporting cap-and-trade systems and carbon pricing mechanisms.
• Managing risks in carbon trading.
• Case studies of central bank involvement in carbon markets.

Module 9: International Collaboration on Climate and Finance

• Initiatives like the Network for Greening the Financial System (NGFS).
• Central bank roles in multilateral climate finance programs.
• Coordinating cross-border climate risk management.

Module 10: Financing Climate Resilience and Adaptation

• Supporting adaptation investments in vulnerable sectors.
• Encouraging financial innovation for resilience.
• Partnering with private and public sectors for climate resilience.

Module 11: Climate Policy Communication and Public Engagement

• Communicating the rationale for climate-related monetary and regulatory policies.
• Engaging stakeholders and fostering collaboration.
• Transparency in reporting climate-related initiatives.

Module 12: Future Trends in Climate Change and Central Banking

• The intersection of climate change and technological innovations (e.g., AI, blockchain).
• Long-term policy strategies for a sustainable economy.
• Anticipating the impacts of geopolitical shifts on climate and finance.

Learning Outcomes

By completing this course, participants will:

1. Understand the linkages between climate change and financial systems.
2. Develop strategies to integrate climate considerations into monetary policy and financial regulation.
3. Analyze and manage climate-related risks through stress testing and scenario analysis.
4. Support the development of sustainable finance and green investment markets.
5. Enhance international collaboration and align with global climate goals.
6. Anticipate future trends and adapt central bank policies to evolving climate challenges.

This course equips central bankers, regulators, and financial professionals with the skills to address climate-related challenges, ensuring resilience and sustainability in the financial system.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.