Central Bank Perspective: Promoting Green Finance for Sustainable Economic Development

Developing Green Macroprudential Policy Green Macroprudential Policy Green LTV Green inclusive financing ratio Carbon calculator Climate risk assessment Banks are the key for an orderly, just and affordable transition • • Banks are the largest carbon emitters nationally, as banks have to proportionally recognize the emission from their debtors as bank emissions 6 To reduce carbon emissions, the Bank must increase the portion of green financing so that it can become a catalyst for the transformation of the debtors to become greener. Due to the systemic nature and the long time horizon of the climate-related risk, macroprudential policy is considered the optimal approach to address the risk Banks reduce carbon emissions by increasing green financing Greening the Financing Green sectors assessment Other green policies Implemented Public expose Green data initiative On progress Green bank award Under discussion Bank The debtor's carbon emissions can be taken into account when approving the loans Banks have to proportionally recognize the debtor's carbon emissions as bank emissions (align to ISO 14064-1:2018) Greening the Debtors NDC

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