The role of Central Banks facing the challenges of climate change

The Central Bank of West African States (BCEAO) started a high-level international conference on February 6, 2024 in Dakar on the theme “The role of central banks in the face of the challenges of climate change”. 

The meeting aims to provide a framework for reflection and sharing of experiences on climate policy which would promote a better contribution of the financial sector to the objectives of climate resilience and transition towards a sustainable economy of States. 

In his speech for the occasion, BCEAO Governor Jean-Claude Kassi Brou noted the responsibility for central banks to understand, assess and mitigate climate risks whose effects can compromise the resilience of the financial system as a whole. . In this regard, he recalled the initiatives taken by central banks, particularly within the framework of the Network for the Greening of the Financial System (NGFS). 

Senegalese Prime Minister Amadou Ba, for his part, presented the challenges of climate change, in particular for UEMOA member states. He highlighted some actions taken by his country in the fight against climate change. The head of the Senegalese government then noted the important role that the financial sector should play in mitigating and adapting to climate change, thus inviting central banks to take climate change into account in the implementation of their missions, in order toto “build a resilient and sustainable financial system”. 

Several panels were on the agenda including:
– Climate change: what are Africa’s priorities to ensure a just energy transition and promote its economic development? 
– Financial stability in Africa: actions by central banks to increase the resilience of the financial system to the challenges of climate change
– Contribution of monetary policy to climate change issues
– From will to action: what holistic approaches for greener financing of African economies?