Federal Reserve withdraws from key global green financne network, NGFS remains resolute

January 18, 2025 — The Network for Greening the Financial System (NGFS), a coalition of central banks and supervisors dedicated to managing climate-related financial risks, has announced the withdrawal of the US Federal Reserve Board from its membership.

The NGFS acknowledged the Fed's decision to leave the “coalition of the willing” with regret but respect. The Fed joined the Network as its 96th member three years after its inception in 2017. Notably, the Fed did not hold a position on the NGFS Steering Committee nor lead any of its workstreams.

Despite the departure, the NGFS, now comprising 143 members, reaffirmed its commitment to addressing climate and nature-related financial risks. Born from the initiative of eight founding authorities at the Paris One Planet Summit in December 2017, the Network emphasizes its continued strength and enthusiasm.

“As extreme climate events and natural disasters are among the few visible and painful certainties of our times, our community of central banks and supervisors stands as strong and determined as ever, mobilised through its Coalition of the willing,” the NGFS stated.

Under the leadership of Chair Sabine Mauderer of the Deutsche Bundesbank and Vice-Chair Fundi Tshazibana of the Reserve Bank of South Africa, the NGFS operates with a 20-staff international Secretariat hosted by the Banque de France in Paris.

The NGFS has produced several key publications, including a report on “Climate change, the macroeconomy and monetary policy” (October 2024) and its “Long Term Climate Scenarios” (November 2024). Looking ahead, the Network plans to release its first short-term scenarios in 2025. Furthermore, the 2025 G20 Presidency has tasked the NGFS with exploring methods for better incorporating adaptation into transition planning, highlighting the Network's global recognition.

The Federal Reserve Board explained its withdrawal by stating that “the work of the NGFS has increasingly broadened in scope, covering a wider range of issues that are outside of the Board's statutory mandate.”

The NGFS remains focused on providing science-based, pioneering, and practical insights to help its members navigate climate and nature-related financial risks within their mandates. The Network continues to be a crucial platform for sharing best practices and promoting the integration of environmental and climate risk management within the financial sector to support a transition towards a sustainable economy. The NGFS currently includes 143 central banks and supervisors and 21 observers.

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