Banxico is Ready to Collaborate with COP26By Emilio Aristegui | Fri, 11/05/2021 - 17:48
In the wake of the UN Conference of the Parties on Climate Change (COP26), Banxico stated its willingness to support and develop financial solutions and regulations to fight climate change in Mexico.
“The Bank of Mexico (Banxico) has been actively working to improve the resilience of the financial system to climate-related risks,” said the bank in a press release. Banxico was one of the founding members of the Network of Central Banks and Supervisors to Green the Financial System (NGFS) and actively participates in the generation of the international sustainable finance agenda through the Stability Board (FSB), the Basel Committee on Financial Supervision and the Group of G20 Sustainable Finance Work
Banxico proposed the creation of a Sustainable Finance Committee within the Financial System Stability Council, chaired by the Ministry of Finance and Public Credit (SHCP). The Committee developed several tasks including: developing a taxonomy for sustainable finance that integrated climate risks and social and governance (ESG) activities in the financial market; improving the quantity and quality of ESG disclosures by financial and non-financial institutions; and creating conditions to increase the mobilization of capital towards sustainable activities.
Mexican financial institutions are increasingly focusing in actions in line with the objectives of the COP26 Conference, said Banxico. “The Bank of Mexico is committed to improving the capacities of financial institutions to identify, monitor and manage risks related to the climate and ESG to which they are exposed.” Banxico continues to implement policies to actively participate in the resolution of the most drastic climate issues stated in COP2 and claims to be willing to work with other organisms to promote the necessary solutions to create a positive impact. “For this purpose, (Banxico) is willing to collaborate with other financial authorities in carrying out climatic scenarios on the financial system.”
The Network of Central Banks and Supervisors to Green the Financial System (NFGS), also published a press release highlighting that the members of the organization will deepen, expand and strengthen their collective efforts towards greening the financial system. “We were established as a coalition of the willing. With our NFGS Glasgow Declaration, we have become a coalition of the committed. Within our mandates, we are a coalition that will deliver,” said Frenk Elderson, NFGS’s Chair and Member of the Executive Board of the European Central Bank.
NFGS have shared tools and knowledge between central banks since 2017. On their recent “NFGS Glasgow Declaration”, they claimed that they are preparing to amplify their collective work to foster and facilitate climate action by all members.