Barbados Leads V20 Central Bank Governors in Tackling Climate Change's Financial Impact
October 25, 2024
Barbados leads the CVF Central Bank Governors Working Group to address climate change's financial impact on vulnerable nations. Initiatives include integrating climate risks into monetary policy and implementing a financial safety net.
Barbados has taken the helm of an international group of central bank governors focused on tackling climate change’s financial impact on vulnerable nations, declaring it will amplify the voices of countries grappling with these issues.
Central Bank Governor Dr Kevin Greenidge is chairing the CVF Central Bank Governors Working Group which is dedicated to examining how the climate crisis affects macroeconomics, monetary policy and financial stability across developing countries.
On Thursday, he held his first round of meetings with fellow governors, deputy governors, and other high-level central bankers from six regions within the V20 group encompassing the Caribbean, Africa, Asia, the Pacific and Latin America. The discussions took place on the sidelines of the International Monetary Fund’s Fall meeting in Washington.
“Barbados is deeply committed to leadership in addressing the financial challenges faced by climate-vulnerable nations. It’s essential that we don’t leave ministries of finance to tackle climate vulnerability alone. As central bankers, we must align financial systems with sustainable practices. This involves integrating climate-related risks into monetary policy, financial supervision, and investment portfolios.”
A key focus of the group’s work will be the implementation of ‘Lifeline’, a financial safety net that pools foreign reserves from V20 member countries to provide swift assistance to nations hit by natural disasters.
Greenidge outlined plans to integrate climate-related risks into monetary policy, financial supervision and investment portfolios. He also highlighted a new initiative launched by V20 finance ministers to address the climate crisis’s economic impacts.
“Together, we are committed to securing the financial resources needed for adaptation and sustainable development. Barbados remains dedicated to amplifying the voices of vulnerable nations and driving global climate action,” he added.
The V20 Finance Ministers Governors Working Group was established during the V20’s 11th ministerial gathering at the World Bank and IMF Annual Meetings in Morocco in October 2023. (SD)
