The Network for Greening the Financial System (NGFS) has issued a declaration for the United Nations biodiversity conference COP17 in Armenia, urging central banks and supervisors to assess nature-related financial risks despite remaining data and methodological gaps. Biodiversity loss and ecosystem degradation can transmit through supply disruptions, resource scarcity and inflationary pressures to threaten financial stability. The declaration builds on the NGFS’s 2024 Conceptual Framework and its 2026 Nature Package on data, modelling and supervision, emphasizing that existing tools already support practical action within members’ mandates, including dependency mapping, water risk indicators and analysis of exposures across the financial system. Alongside the declaration, the NGFS is releasing a compendium of implementation practices drawing on a survey across 15 member jurisdictions and six detailed country case studies. It is also establishing the Nature-Economy Model Intercomparison Project, inviting leading modelling teams to simulate the economic and financial consequences of a common narrative. The project will test methods that could inform future NGFS nature scenarios and explore complementarities with its climate scenario framework, addressing continuing difficulties in modelling the effects of ecosystem degradation.
Network for Greening the Financial System issues COP17 declaration and establishes nature risk modelling project
The Network for Greening the Financial System has issued a COP17 declaration urging practical assessment of nature-related financial risks despite data and methodological gaps. It is releasing an implementation compendium drawing on practices across 15 jurisdictions and six country case studies. A new Nature-Economy Model Intercomparison Project will test methods that could inform future NGFS nature scenarios and explore complementarities with climate scenarios.