Sustainable Finance and ESG Policy for Central Banks: A Comprehensive Training Course

Introduction

The growing importance of environmental, social, and governance (ESG) factors in financial markets requires central banks and regulators to integrate sustainable finance into their policy frameworks. This training course is designed to provide a comprehensive and practical guide to understanding the role of central banks in fostering a sustainable financial system. Participants will gain a deep understanding of the key concepts of sustainable finance and ESG, the risks and opportunities they present, and the policy toolkit available to address them.

The program also focuses on the crucial link between sustainable finance and financial stability, exploring how climate and other ESG-related risks can affect asset prices, creditworthiness, and overall systemic risk. We will examine the policy toolkit available to central banks to encourage sustainable investment, including the use of climate-related stress tests, disclosure requirements, and green bond markets. By combining theoretical foundations with real-world case studies, this course will equip policymakers and analysts with the skills necessary to navigate a dynamic risk landscape and contribute to a more sustainable and resilient economic future.

Target Audience

  • Central bank research and policy staff
  • Financial regulators and supervisors
  • Government economic and environmental policy officials
  • Academics and students of sustainable finance
  • Financial market analysts specializing in ESG
  • International financial institution staff
  • Public sector debt managers
  • Legal and compliance professionals

Duration

5 days

Course Objectives

Upon successful completion of this training, participants will be able to:

  • Explain the core concepts of sustainable finance and ESG.
  • Analyze the impact of ESG factors on financial stability.
  • Describe the policy toolkit for a central bank's response to climate change.
  • Evaluate the challenges of transitioning to a low-carbon economy.
  • Discuss the role of green finance in mobilizing capital for climate action.
  • Apply analytical techniques to assess climate-related financial risks.

Modules Course Content

Module 1: The Foundations of Sustainable Finance

  • The economics of climate change (e.g., externalities, market failure)
  • The role of ESG factors in finance
  • The physical risks of climate change (e.g., extreme weather events)
  • The transitional risks of climate change (e.g., policy, technology)
  • The importance of a robust economic framework

Module 2: ESG and Financial Stability

  • The impact of ESG risks on a financial system
  • The role of credit risk and market risk
  • The challenges of data and measurement
  • The importance of a forward-looking approach
  • The link between ESG and systemic risk

Module 3: Green Finance and Green Bonds

  • The definition and scope of green finance
  • The role of green bonds and other green financial instruments
  • The challenges of a green washing
  • The role of a central bank in a green financial system
  • The importance of a robust framework

Module 4: The Role of a Central Bank

  • The central bank's mandate and sustainable finance
  • The role of monetary policy and climate change
  • The challenges of a central bank's independence
  • The role of a central bank in a financial crisis
  • The central bank's role in a green transition

Module 5: Climate-Related Stress Testing

  • The purpose and objectives of climate-related stress testing
  • The design of a climate-related scenario
  • The challenges of forecasting in a climate scenario
  • The use of a central bank's model
  • The importance of a robust framework

Module 6: Supervisory and Regulatory Frameworks

  • The role of a central bank's supervision
  • The use of a supervisory review process
  • The challenges of regulating climate-related risk
  • The role of a regulatory sandbox
  • The importance of a forward-looking approach

Module 7: The Role of Technology and FinTech

  • The impact of FinTech on green finance
  • The challenges of regulating FinTech
  • The role of new technologies in supervision
  • The impact of digital currencies
  • The use of technology for surveillance

Module 8: Global Regulatory Frameworks

  • The role of the Financial Stability Board (FSB)
  • The Basel Accords (Basel III)
  • The challenges of global policy coordination
  • The role of international standards
  • The importance of a level playing field

Module 9: Crisis Management and Resolution

  • The role of a central bank in a crisis
  • The challenges of a financial crisis
  • The role of a resolution framework
  • The importance of a well-defined enforcement policy
  • The lessons from past financial crises

Module 10: Case Studies and Current Debates

  • The role of central banks in a green transition
  • The debate over the design of a carbon tax
  • The challenges of managing a financial crisis
  • The future of financial stability
  • The future of banking regulation

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Sustainable Finance And Esg Policy For Central Banks: A Comprehensive Training Course in Bulgaria
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