MNB vice president: there is no green transition without central banks

By: Trademagazin Date: 2024. 06. 24. 12:08

The energy transition is one of the world’s greatest challenges and at the same time one of its greatest opportunities, which also requires a new approach from the central banks – emphasized Barnabás Virág, vice-president of the central bank of the Network for Greening the Financial System (NGFS), according to information from the Hungarian National Bank (MNB). at its London conference on Monday.

Barnabás Virág emphasized that making the operation of farms sustainable cannot be postponed any longer; the successful implementation of the transition to sustainability requires significant investments, which would also stimulate the faltering global economic growth.

He added that central banks, as actors shaping the global financial system, need to integrate environmental sustainability aspects, and drew attention to the fact that global warming increases inflation, destroys the predictability of the economic environment and causes serious social damage. The unpredictability of the climate also negatively affects the profitability of companies, which draws attention to the importance of the climate exposure of the financial system, he noted.