Business Hub – Cairo:
As the date of the COP 27 climate summit, which Egypt will host this year, approaches, At an interval of just over 100 days, The Central Bank of Egypt and the Bank of England are organizing a workshop to discuss climate risks and their potential impact on global economies.
The workshop comes within the framework of a technical cooperation plan funded by the UK government. Where Bank of England staff share the UK’s experience in analyzing, managing and understanding the effects of climate change on financial institutions and the stability of the financial system.
The three-day workshop covers: The efforts of the International Green Financial System Network (NGFS), which includes 116 member central banks and financial regulators from around the world, including the Central Bank of Egypt, This is to develop recommendations and share best practices in combating climate change.
The workshop will be opened by Sarah Breeden, Executive Director of Financial Stability and Risk Strategy at the Bank of England, Supervising the Bank’s activities in relation to climate change, It has also been a member of the NGFS Network Steering Group since its inception in 2017.
The workshop includes presentation and discussion of the results of the exploratory climate scenario issued by the Bank of England last May. Which examines the financial risks posed by climate change to the largest banks and insurance companies operating in the United Kingdom, مما يتيح للبنك المركزي المصري اكتساب الخبرات لكيفية إدارة مخاطر المناخ من خلال تجارب الدول الأخرى.
Bank of England experts provide support to the Central Bank of Egypt and other central banks, Including in Sierra Leone, Morocco and the South African Development Community, To deal with the effects of the COVID-19 pandemic, As well as with regard to data analysis, which contributes to achieving financial stability across the continent.
Mai Abul-Naga said, Senior Undersecretary of the Central Bank of Egypt, “Climate change is considered one of the most important areas of sustainable finance, Where climate change has created new types of risks that must be taken into account, Certainly, the transition to low carbon economies must be gradual and well thought out to ensure financial and banking stability. Banks will have an active role in facilitating this transition, Here, the Bank of England’s leading role in climate finance should be noted. And the continuous support it provided to the Central Bank of Egypt to enhance and develop the ability to face these emerging risks, We look forward to more cooperation in the future in order to achieve more sustainable economic development.”
Meanwhile, Gareth Bailey said, British Ambassador to Egypt “I am delighted to see the latest phase of our climate cooperation with Egypt, As our central banks meet to discuss the important issue of how to address the economic impacts of climate change, If we are to fulfill the commitments agreed at COP 26 as part of the Glasgow Climate Charter, We need to find smart and innovative solutions to the financial risks that result from climate change, The Bank of England has world-leading expertise in this field. I am proud that we are working with our Egyptian partners to share our experience and help make COP27 a success.”
Sarah Breden explained, Executive Director of Financial Stability and Risk Strategy at the Bank of England, “The challenges posed by climate change are very important. And if we are to address it successfully, We will need to share experiences across institutions, The Climate Scenario Analysis workshop that we are holding is a practical example of the international cooperation required in this framework, The Bank of England staff was heavily involved in analyzing the scenario. and modeling the financial risks that result from these analyzes, including climate change in the monitoring and supervision methodology, Through the workshop, we look forward to sharing some of our experiences with our partners in the Central Bank of Egypt.”
The workshop is part of the partnership in the field of green economy between Egypt and the United Kingdom, Egypt and the UK are cooperating extensively to work towards fulfilling the commitments and actions agreed upon during COP26 and to ensure the successful transition of Egypt’s presidency to the COP27 Climate Summit.