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Central banks' misguided plan to become climate warriors is doomed to fail


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As if central banks today did not already have enough to do printing all the paper money needed to finance proliferating government spending. Regardless, they are taking on a new responsibility, the “greening of the financial system.” 
According to the Wall Street Journal, they have pledged to join forces with financial regulators, “to limit climate change by steering their financial systems away from funding fossil fuels.” Given central banks’ collective history of causing inflations, recessions and financial crises while managing monetary policy, what could possibly go wrong if they start using the financial system to promote ”environmental sustainability”?    ....

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RBI joins network for 'greening the financial system' - The Hindu BusinessLine


RBI joins network for ‘greening the financial system’
April 29, 2021
NGFS was launched at the Paris One Planet Summit on December 2017
The Reserve Bank of India (RBI) has joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS) as a Member.
The NGFS is a group of Central banks and supervisors willing to share the best practices and contribute to the development of the environment and climate risk management in the financial sector, while mobilising mainstream finance to support the transition towards a sustainable economy. The System was launched at the Paris One Planet Summit on December 2017.
“RBI expects to benefit from the membership of NGFS by learning from and contributing to global efforts on Green Finance which has assumed significance in the context of climate change,” it said in a statement. ....

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Financial stability matters when it comes to tackling climate change


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Climate change is one of the greatest threats facing humanity. As such, the House Subcommittee on Investor Protection Entrepreneurship and Capital Markets is leading the discussion with a hearing today. The panel rightfully realizes that with a changing climate comes a completely new dimension of risk to the financial industry. One must only look toward the recent catastrophic winter storm damages to know that now is the time for financial regulators to proactively deal with this threat.
While federal agencies must maintain appropriate boundaries between environmental policy and financial regulation, they should identify and mitigate such growing risk to the financial system from environmental threats. Volatile weather, rising sea levels, and often intensifying natural disasters impact financial institutions from their exposures to affected households and businesses as well as the collateral damage. ....

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