The effects of climate change are felt around the world. Extreme weather events such as heatwaves and heavy rainfall are becoming more frequent and more severe in Germany, too. The Paris Agreement highlights the effects of climate change on the global financial system – and the importance of the global financial system to fight climate change.
Against this backdrop, the Bundesbank, within the scope of its mandate, supports the transition towards a greener financial system. We analyse the impact of climate change and climate policy on the financial sector, as we consider climate-related risks as a source of financial risks. Our experts are engaged in national and international fora, such as the global Network for Greening the Financial System (NGFS), of which we are a founding member.