BASSETERRE, St. Kitts, CMC – The St. Kitts-based Japanese Caribbean Central Financial institution (ECCB) says it has signed a memorandum of understanding (MOU) with the Agence Française de Développement (AFD) to help with incorporating climate-based monetary danger administration within the supervision and regulation of the Japanese Caribbean Forex Union (ECCU) financial system.
The French-based AFD says it has carried out greater than 4,000 initiatives in France’s abroad departments and territories and 115 different international locations, contributing to France’s dedication to supporting the Sustainable Improvement Targets (SDGs).
ECCB Governor Timothy N. J. Antoine and AFD Senior Funding Officer Lionel Lecrinier signed the MOU that the financial institution mentioned represents one other step in the direction of greening the ECCU monetary system and the ECCB’s achievement of its mandate to take care of regional financial stability.
“Local weather danger is monetary danger. Subsequently, we’re very happy to associate with the AFD regarding cooperating on this important space. This initiative advantages regulators throughout the forex union. On the heels of COP 28, we wish to proceed to ship a strong message in regards to the necessity for formidable and pressing motion globally in regards to the local weather,” Antoine mentioned.
Lecrinier mentioned that the property within the ECCU monetary system had been in danger as a result of penalties of local weather change and that the monetary system was bearing transition dangers.
He mentioned that whereas the area’s monetary system was uncovered to dangers, there have been alternatives, noting that renewables and climate-smart agricultural tools had been rising sectors and a part of the inexperienced economic system.
“Via the MOU, the AFD and the European Union are offering funding to help the ECCB and nationwide regulators within the ECCU with integrating climate-related monetary danger administration of their supervision instruments. The undertaking additionally goals to extend the trail to inexperienced financing and loans,” the ECCB mentioned.
It mentioned that the technical help supplied by means of the settlement will search to construct capability amongst regulators and monetary establishments on the significance and influence of potential climate-related monetary dangers and easy methods to assess and monitor these dangers. The collaboration may also help regional governments’ adoption of sufficient rules to mitigate climate-related dangers.
The ECCB serves as a central financial institution for the islands of Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, and St. Kitts-Nevis. On the similar time, the ECCU members are Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St.Kitts-Nevis, St.Lucia, and St.Vincent and the Grenadines.
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