Finance minister urges integration of climate considerations in economic policies

Ghana's Minister for Finance, Dr. Mohammed Amin Adam, has charged central bank governors to integrate climate risks and opportunities into monetary policies and financial regulation practices. He says this is to make economies stronger against problems caused by climate change and to help switch to an eco-friendly and climate-resistant economy. 'Our central banks are uniquely positioned to lead this transition by embedding climate risk assessments into our macroeconomic frameworks,' he said. He said this at the recent V20 Finance Ministers and Central Bank Governors Working Group meeting held during the World Bank/IMF Spring Meetings, which marked the first gathering of the group since its inception in 2023. This initiative aims to safeguard local economies from the aftermath of natural disasters by ensuring swift access to liquidity for SMEs and households through central banks and financial institutions. Dr. Adam, who also serves as the Chair of the V20, emphasized the critical role central banks play in steering economies towards green and climate-resilient practices. He highlighted the need for climate risk assessments to be a fundamental part of macroeconomic frameworks. 'Our central banks are uniquely positioned to lead this transition by embedding climate risk assessments into our macroeconomic frameworks,' he said. Amin Adam also underscored the interlinkages between climate change and economic policy, which, when ignored, could lead to dire consequences for countries, hence the need to integrate climate risks and opportunities into monetary and economic policies. Source: Ghana Web