The Network for Greening the Financial System (NGFS) has published a Declaration on the Economic Cost of Climate Inaction at COP30 in Belém, warning that delays in climate action are amplifying macroeconomic and financial risks relevant to the core mandates of central banks and financial supervisors. The declaration highlights rising economic costs from inaction and warns that a three-year delay could halve the effectiveness of transition efforts, increasing transition costs from 0.5% to 1.3% of global GDP by 2030. It also flags the potential for climate-related shocks to generate global spillovers through disruptions to food systems, energy markets and supply chains, with disproportionate impacts on vulnerable economies. Financial institutions are called on to embed climate and nature-related risks in strategies and operations via scenario analysis, climate disclosure standards and transition planning, drawing on recent NGFS tools and publications. The NGFS will hold a virtual launch event for the declaration on 12 November at 12:00pm CET and will participate in several COP30 events.
Network for Greening the Financial System 2025-11-05
Network for Greening the Financial System issues declaration on the economic cost of climate inaction at COP30
The Network for Greening the Financial System (NGFS) issued a declaration at COP30 in Belém, emphasizing that delays in climate action heighten macroeconomic and financial risks, potentially doubling transition costs to 1.3% of global GDP by 2030. The declaration urges financial institutions to integrate climate risks into strategies using scenario analysis and climate disclosure standards, with a virtual launch event scheduled for 12 November.