The South African Reserve Bank has published a consultation paper proposing a climate change policy and regulatory framework for the national payment system, aimed at strengthening payment-system resilience to climate-related and other environmental risks while supporting a shift toward greener payments. The proposals would apply to all payment institutions, including payment system financial market infrastructures, and set expectations for governance, strategy and risk management. These include board and senior management accountability, institution-wide policies and controls, integration of climate risks into credit, liquidity, market, operational and other risk frameworks, and incorporation of climate-related disruptions into business continuity and disaster recovery planning. The paper also sets out expectations for scenario analysis and stress testing, and proposes climate-related disclosures to the Reserve Bank aligned at minimum with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures recommendations, covering governance, strategy resilience (including a two degrees Celsius or lower scenario), risk management, and metrics and targets such as greenhouse gas emissions, energy and water usage. Comments are requested by 30 April 2025. The paper also envisages integrating climate-related risks into the Reserve Bank’s oversight and supervision of the payment system and establishing a climate change committee with payments-sector stakeholders to support capacity building and knowledge sharing.
South African Reserve Bank 2025-03-28
South African Reserve Bank launches consultation on climate risk management and greener payments in the national payment system
The South African Reserve Bank's consultation paper proposes a climate change policy for the national payment system to boost resilience against environmental risks and promote greener payments. It sets governance, strategy, and risk management expectations, including climate risk integration and climate-related disclosures aligned with the Financial Stability Board’s Task Force. A climate change committee is also suggested for capacity building and knowledge sharing.