International financial body submits roadmap for mitigating climate-related risks to G20:
On Wednesday, a major international financial institution called on G20 finance ministers and central bank leaders to better respond to growing climate-related financial risks and warn of ‘long-term consequences’.
Switzerland’s Financial Stability Board presented a roadmap for a G20 meeting in Venice later this week.
The FSB, created after the 2008 financial crisis, has said that global climate-related risks are “far-reaching” and that it must respond in a coordinated manner.
“It is global in nature and will affect all entities, sectors, and economies”, states the document.
“The aim is to take climate change into account in all risk decisions,” said the roadmap addressed to finance ministers from the Group of 20, the world’s 19 largest economies plus the European Union.
Ahead of the Venice meeting, the FSB also asked the G20 to step up its efforts to raise the interbank Libor rate that generated the scandal.
He specifically described disclosure requirements for corporations, data, and the use of consistent statistics, vulnerability analysis, and regulatory and supervisory practices.
Furthermore, it encouraged them to investigate the vulnerabilities exposed by the COVID-19 crisis, including in money market funds.
“The global financial system has resisted the COVID event so far, thanks to the increased resilience reformed by the G20 reform of financial regulations and the swift, bold and determined response of international policy,” said FSB President Randal Quarles.
But he warned that there are areas where the coronavirus pandemic has vulnerabilities that urgently need to be addressed.
The FSB is expected to release an interim report later this month on lessons learned from the crisis and how it is affecting global financial stability.