Course Details

Climate Change and Financial Stability: Policy Tools and Regulations Training Course

INTRODUCTION

Climate change poses unprecedented risks to the global financial system, from physical impacts like extreme weather events to transition risks associated with the shift to a low-carbon economy. As the financial sector faces these new realities, central banks, financial regulators, and policymakers must evolve to safeguard economic stability.

This training course offers an in-depth exploration of the intersection between climate change and financial stability. It provides participants with the knowledge and tools necessary to identify, assess, and address climate-related risks. Emphasizing practical regulatory and policy approaches, the course aims to build capacity among financial sector professionals to ensure financial systems remain resilient in the face of climate-related challenges.

DURATION

5 days

COURSE OBJECTIVES

By the end of this course, participants will:

1. Understand the impact of climate change on financial stability:
   • Grasp the potential economic disruptions caused by physical and transition risks.
   • Recognize the interconnections between climate risks and financial systems.
2. Identify and assess climate-related financial risks:
   • Learn how to measure and manage physical and transition risks.
   • Understand the use of scenario analysis and climate stress testing for risk assessment.
3. Explore policy tools and regulatory approaches:
   • Analyze the regulatory frameworks and policies that address climate-related risks.
   • Understand how central banks can incorporate climate risks into monetary and macroprudential policies.
4. Examine international guidelines and best practices:
   • Study international frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Network for Greening the Financial System (NGFS).
   • Explore how global standards are shaping regulatory responses to climate risks.
5. Develop strategies for climate-resilient financial systems:
   • Learn how to design and implement policies that promote a climate-resilient financial system.
   • Explore ways to enhance financial institutions' capacity to manage climate risks.

COURSE CONTENT

Module 1: Introduction to Climate Change and Financial Stability

• Overview of climate change risks (physical and transition risks)
• The link between climate change and financial stability
• Key concepts: climate-related financial risk, carbon pricing, and stranded assets

Module 2: Identifying and Measuring Climate-Related Financial Risks

• Tools and methodologies for assessing climate risks
• Scenario analysis and climate stress testing
• Role of data and disclosures in assessing financial vulnerabilities

Module 3: Regulatory and Supervisory Frameworks for Climate Risks

• Overview of global standards: Basel, TCFD, and NGFS recommendations
• Central bank approaches to integrating climate risks in monetary policy
• Supervisory and prudential policies for climate risk management
• Best practices for climate-related disclosures and reporting

Module 4: Policy Tools for Addressing Climate-Related Financial Risks

• Macroprudential tools to mitigate systemic climate risks
• The role of monetary policy in addressing climate-related challenges
• Fiscal policy and market-based instruments (e.g., carbon taxes, green bonds)
• Incentivizing green finance through financial regulation

Module 5: International Cooperation and Climate Finance Governance

• Role of international institutions (e.g., IMF, World Bank, UN) in climate finance
• Case studies of multilateral cooperation on climate and finance
• Aligning national policies with international climate goals (e.g., Paris Agreement, SDGs)

Module 6: Building Climate-Resilient Financial Systems

• Strategies for financial institutions to build resilience to climate change
• Integrating climate risks into long-term financial planning
• Promoting green finance and sustainable investments
• The future of financial stability in a climate-conscious world

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 and 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