African central banks align monetary policies with climate shocks

Transcript

00:00The 47th Annual Meeting of the Association of African Central Banks was themed around

00:11climate change and the role of central banks around what is now emerging as one of the

00:16greatest challenges of the 21st century.

00:21Climate change is no longer an arbitrary threat.

00:24It directly affects our economies, our financial systems and the stability of our countries.

00:29Financial banks, which are responsible for monetary and financial stability, must now

00:33incorporate these risks into their policies, macroeconomic models and instruments.

00:39Macroeconomic stability, which is a prerequisite for growth and development, cannot be ensured

00:43without taking into account climate impacts and energy transitions.

00:49According to the Bank of Central African States Governor, this situation must prompt the continent's

00:55apex banks to react and adapt.

00:59Traditional players in monetary regulation and financial stability are increasingly investing

01:04in integrating climate issues into their policy strategies.

01:08It is our responsibility to anticipate and assess climate risks in our macroeconomic analysis

01:16and financial stability reports, so that our policies take into account the new vulnerabilities

01:22affecting our economies.

01:23It is also our responsibility to encourage green finance and investment by putting in place

01:29appropriate incentives and regulatory frameworks capable of channeling green resources towards

01:35these projects that promote resilience and inclusive growth.

01:40The meeting proposed that the focus henceforth will be on green finance through strengthening

01:46sustainable investment by promoting climate-friendly banking services and supporting the integration

01:52of environmental, social and governance factors into financial decision making.

01:58We must resolutely pursue the modernization of our payment and supervisory systems in order

02:05to further strengthen investor confidence, ensure fluidity and consolidate the robustness of our

02:11financial markets.

02:12Finally, it is imperative to promote regional and continental cooperation as no country can tackle

02:19climate and financial challenges alone.

02:21Only through unity, solidarity and integration will Africa be able to build an economic

02:27and monetary architecture that matches our ambitions.

02:31The custodians of monetary policy were challenged to promote transparency by encouraging financial

02:37institutions to publish clear information on the environmental impact.

02:43This will enable investors to make informed choices and promote better allocation

02:48of capital to sustainable projects.