cover image: NGFS Long-Term Scenarios for Central Banks and Supervisors - 2024 Update

NGFS Long-Term Scenarios for Central Banks and Supervisors - 2024 Update

11 Nov 2024

This report, developed by the Network for Greening the Financial System (NGFS), presents the fifth phase of the NGFS climate scenarios, offering updated projections for central banks and supervisors to assess climate-related risks in financial systems. The 2024 version includes enhancements in climate risk modeling, featuring a new damage function that better captures the economic impacts of chronic and acute climate risks. The scenarios consider a range of futures, including orderly, disorderly, and "hot house" world scenarios, each reflecting different trajectories for policy implementation and climate impacts. With insights into the macroeconomic and financial consequences of climate inaction versus proactive transition efforts, this report emphasizes the urgency of coordinated climate policies to mitigate economic disruption. Scenario data is accessible through the NGFS online portal, supporting informed policy and risk management in financial sectors worldwide.
economic impact climate risk financial stability central banks carbon pricing climate modeling sustainable finance physical risks ngfs scenarios transition risks

Authors

Network for Greening the Financial System

Pages
42
Published in
France

Table of Contents