It is estimated that moving towards a carbon neutral and resilient world will cost around 9 trillion annually by 2050. Channeling funds towards activities that catalyze transformation in Latin America and the Caribbean is essential to achieve both its climate objectives and other development objectives. On the other hand, climate change and the policies to combat it will affect the financial system through its physical impacts and the changes inherent in the transition itself.
Understanding how banks are adapting to this new environment is critical to fostering a dynamic transition in an environment of stability. The event’s objective is to present the actions that are being carried out from the point of view of the central bank (as one of the regulators of the financial market), the multilateral bank and the commercial bank of the region.
Understand the relevance of climate risk scenarios for the management of the ecological transition in economics and finance. The Network of Central Banks and Supervisors for the greening of the financial system has developed a set of models that allow establishing different scenarios of the relationship between the economy and climate change with a special focus on financial risks. Banco de México, in partnership with ECLAC and AFD, is developing tools to adapt it to the priorities and realities of Latin America and the Caribbean.
In addition, the UN Environment Financial Initiative (UNEP FI) and CAF – Development Bank of Latin America, in collaboration with FELABAN and ALIDE, present the report “How banks in Latin America and the Caribbean adapt to Climate Change”. This report is based on a regional survey, and is part of a global project, which will be published at COP 27.
Within the framework of these regional advances, it is expected to present the vision of various actors in the financial sector, including Central Banks, Public Banks, Private Banks, Multilateral Agencies and regulators, who will be able to discuss the opportunities and challenges faced by financial institutions in leveraging projects that contribute to adaptation to climate change.
