Sustainable Finance And Climate Risk For Central Banks Training Course

Introduction

As the world grapples with the impacts of climate change, central banks are increasingly recognizing their critical role in fostering sustainable finance and addressing climate-related risks to the financial system. Climate change poses systemic risks, including physical risks from extreme weather events and transition risks from shifts toward a low-carbon economy. Central banks must incorporate these considerations into monetary policy, financial regulation, and market operations to ensure stability and resilience.

The Advanced Sustainable Finance and Climate Risk for Central Banks course is designed to equip central banking professionals with the knowledge and tools to integrate sustainability into their operations. Participants will explore key frameworks, including the role of central banks in the Network for Greening the Financial System (NGFS), methods for assessing and mitigating climate risks, and strategies to support the transition to sustainable finance while maintaining financial stability.

Target Audience

This course is tailored for:

• Central Bank Officials: Monetary policy makers, supervisors, and regulators.
• Sustainability Officers: Professionals leading green finance and ESG initiatives.
• Risk Managers: Specialists assessing climate-related financial risks.
• Economists and Researchers: Analysts studying the intersection of climate change and financial systems.
• Financial Market Participants: Stakeholders involved in sustainable finance and green bond markets.

Course Objectives

By the end of this course, participants will:

Understand Climate-Related Financial Risks

• Identify physical and transition risks impacting financial systems.
• Analyze the implications of climate change for monetary policy and financial stability.

Integrate Sustainability into Central Bank Operations

• Explore strategies for greening central bank balance sheets.
• Understand the role of green bonds and sustainable finance instruments.

Leverage Risk Assessment Tools and Frameworks

• Apply scenario analysis and stress testing for climate risks.
• Use data and metrics to monitor environmental risks in financial systems.

Align with Global Sustainability Standards

• Understand the role of the NGFS and international frameworks for sustainable finance.
• Explore regulatory approaches to integrating climate risks into financial supervision.

Promote Financial Market Development for Sustainability

• Support the development of green finance markets and instruments.
• Foster collaboration with stakeholders to drive climate-friendly investment.

This course empowers central banking professionals to lead the integration of sustainable finance practices and climate risk management, ensuring resilience and long-term stability in a changing world.

Module 1: Introduction to Sustainable Finance and Climate Risk

• Defining sustainable finance and its components.
• Types of climate-related financial risks: physical and transition risks.
• Role of central banks in supporting sustainable development goals (SDGs).

Module 2: Climate Change and Financial Stability

• Climate change as a financial system risk.
• Impact of extreme weather events on financial markets and institutions.
• Case studies of financial disruptions caused by climate risks.

Module 3: Central Banks and the Role of the NGFS

• Objectives and recommendations of the NGFS.
• Incorporating NGFS principles into central bank operations.
• Global trends in central bank sustainability initiatives.

Module 4: Green Monetary Policy Frameworks

• Adjusting policy tools to support climate resilience.
• Impact of climate risks on inflation, interest rates, and economic growth.
• Designing green refinancing operations and targeted lending.

Module 5: Climate Risk Assessment and Scenario Analysis

• Conducting climate risk scenario analysis and stress testing.
• Using climate data and models to evaluate financial exposures.
• Interpreting results to inform policy decisions.

Module 6: Green Bond Markets and Sustainable Finance Instruments

• Overview of green bonds, sustainability-linked bonds, and other instruments.
• Central banks’ role in supporting green bond markets.
• Case studies of green bond issuance by central banks and governments.

Module 7: Climate Risk and Financial Regulation

• Integrating climate risks into prudential regulation and supervision.
• Updating capital requirements to account for climate exposures.
• Enhancing disclosure and transparency requirements.

Module 8: Greening Central Bank Balance Sheets

• Managing climate risks in central bank reserves and portfolios.
• Promoting sustainable investments through balance sheet policies.
• Challenges and opportunities in aligning with green objectives.

Module 9: Advancing Financial Inclusion through Green Finance

• Ensuring access to green finance for underserved populations.
• Supporting small businesses and microfinance in the green economy.
• Leveraging technology to drive sustainable financial inclusion.

Module 10: Public-Private Partnerships in Sustainable Finance

• Central banks’ role in promoting private sector green investments.
• Building effective partnerships with financial institutions and governments.
• Successful examples of public-private collaboration in sustainability.

Module 11: Emerging Technologies and Data for Climate Finance

• Role of big data, AI, and IoT in assessing climate risks.
• Using satellite imagery and geographic data for risk monitoring.
• Integrating technology into sustainable finance frameworks.

Module 12: Future Trends and Challenges in Sustainable Finance

• Trends in carbon markets and decarbonization strategies.
• Addressing challenges such as greenwashing and measurement complexities.
• Preparing for international developments in climate finance regulation.

Learning Outcomes

By completing this course, participants will:

1. Understand the systemic implications of climate risks on financial systems and stability.
2. Incorporate sustainability principles into central bank operations and monetary policy frameworks.
3. Leverage tools like scenario analysis and stress testing for effective climate risk assessment.
4. Support the growth of green finance markets and sustainable investments.
5. Collaborate with stakeholders to drive innovation and resilience in sustainable finance.

This advanced course empowers central banks to take proactive steps in addressing climate-related risks and supporting sustainable development, ensuring long-term financial and systemic resilience.

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.