NGFS-CFMCA Sustainable Finance and Macro Platform

Towards Joint Approaches to Physical Risk Assessment, Macroeconomic Policy Design and Sustainable Financing

The NGFS and the Coalition of Finance Ministers for Climate Action (CFMCA) will hold their first joint workshop in London this week – the first one since announcing our Joint Dialogue Platform at COP30 last November.

Together, we’re kicking off a conversation between finance ministries and central banks on the macroeconomics of climate change and sustainable finance.

Climate change is increasingly a macro‑relevant source of shocks for both central banks and ministries of finance. Physical risks such as floods, droughts, heatwaves, and storms are disrupting growth, inflation, fiscal balances, employment, and financial stability. Since 2017, within the NGFS, central banks have applied their analytical efforts to improve collective understanding of the implications of climate risks for financial markets and macroeconomics. Finance ministries also face growing pressure to reflect these risks in fiscal sustainability, sovereign risk analysis, public investment planning, and medium‑term budgeting - even as many still lack sufficient data, modelling tools, and institutional capacity to do so effectively.