Webinar: How are African banks coping with Climate Change?

The second webinar entitled “How are African banks coping with Climate Change?” will discuss how climate-related risks threaten the functioning of banking institutions as well as the stability of the financial system. The discussions will also shed light on initiatives of banks to implement sustainable practices and central banks to create an enabling environment for sustainable finance drawing on international best practices.

Event description:

Context
Climate change and climate policy affect the balance sheets and business models of banks in different ways. African banks are vulnerable to the increasing frequency and severity of climate change shocks. Moody[1]’s expects that environmental factors will lead to a deterioration of the banks’ credit quality and profitability in the long term if banks do not take measures to prudently manage climate-related and environmental risks.  

Banks in Africa are also increasingly aware of the importance of adopting green financing principles, seeking to address risks and more importantly, to grasp new opportunities. However, only 17% of banks have so far introduced specific green financing products, and these are estimated to account for only 2-20% of their portfolio[2]. Central banks and supervisory authorities play a key regulatory role. They are well placed to guide the banking sector towards supporting the low-carbon transition and implementing adaptation strategies through the application of effective financial regulation and appropriate monetary policies. 

Climate Change and the African Financial Sector Webinar Series
The African Development Bank (AfDB), Global Center on Adaptation (GCA), UNEP FI and the Secretariat of Making Finance Work for Africa Partnership (MFW4A), in partnership with the African Financial Alliance on Climate Change (AFAC), are convening a series of webinars on Climate Change and the Financial Sector to raise awareness around the risks and opportunities. The series will consist of three/four (3/4) webinars addressing specific subjects.  

The second webinar entitled “How are African banks coping with Climate Change?” will discuss how climate-related risks threaten the functioning of banking institutions as well as the stability of the financial system. The discussions will also shed light on initiatives of banks to implement sustainable practices and central banks to create an enabling environment for sustainable finance drawing on international best practices.