MNB and European Bank for Reconstruction and Development (EBRD) organized an international online conference on green finance. The discussions at the conference focused on the assessment and quantification of the adverse economic effects of climate change, energy efficiency investments to achieve a green recovery from the COVID-19 pandemic, and funding opportunities for renewable energy production. MNB announced that it will shortly introduce new bank capital requirement discounts supporting green corporate lending, while transforming its own operations to become fully net zero carbon.
Csaba Kandrács, Deputy Governor of MNB, highlighted that MNB the new capital requirement discount to support green corporate lending would initially cover renewable energy investments and green bonds purchases. He added that MNB will become completely carbon-neutral. It will offset its emissions in 2020 by financing ecological investments next year. In the meantime, it plans to reduce its emissions significantly primarily by swapping its energy consumption for green energy.
At the meeting several speakers discussed financial risks of environmental nature. In their speeches, Ma Jun, Special Advisor to the Governor of PBC, and Jo Paisley, Co-President of GARP Institute, underlined that financial institutions have started assessing the adverse effects arising from climate change and have begun to implement them into their risk management procedures, but there was much to be done urgently. In addition, Sean Kindey, co-founder and CEO of the Climate Bonds Initiative, described the global trends in the green bonds market. He noted that the growth of these new types of instruments was not restricted by COVID-19 pandemic. The closing panel discussion clarified the potential opportunities offered by green bonds for Central Europe, pointing out that green bonds may provide additional funds the for necessary investment projects in the region.
Keywords: Europe, Hungary, Banking, COVID-19, Climate Change Risk, ESG, Green Bonds, Regulatory Capital, EBRD, Sustainable Finance, MNB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleBoE and FCA Launch Public Private Forum on Artificial Intelligence
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.