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Green Central Banking @greencb.bsky.social · 11h

5️⃣ Credible supervision:

Supervisors should be watchdogs, not box-tickers. 🐾
Simpler frameworks let regulators focus on real threats, not paperwork.
That builds trust & strengthens the system’s integrity. 🏛️

Green Central Banking @greencb.bsky.social · 11h

4️⃣ Effective discipline:

Clearer rules create stronger oversight. 📋
When bank health is judged on simple metrics, both markets & the public can hold institutions to account.
Transparency & modular design strengthen discipline. ⚖️

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Green Central Banking @greencb.bsky.social · 11h

3️⃣ Greater modularity:

When systems are too interconnected, failure spreads fast. ⚡
Separating speculative investment from commercial banking helps contain risk.

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Green Central Banking @greencb.bsky.social · 11h

2️⃣ Higher buffers:

More equity means more resilience. 💪
Strong buffers cure moral hazard, reduce funding costs and protect the public from having to bail out failing

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Green Central Banking @greencb.bsky.social · 11h

1️⃣ Simplicity in rules:

Complexity breeds loopholes and hidden risks. ⚙️
Replacing intricate Basel risk-weights with a simple leverage ratio — equity divided by total assets — creates transparency and helps reveal true financial strength.

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Green Central Banking @greencb.bsky.social · 11h

The financial turmoil of 2023 was not an anomaly but a symptom of a system ill-equipped for the profound shocks that may lie ahead, writes Sunil Sharma of George Washington University.

Sharma sets out five pillars for a simpler, more resilient financial system. 👇 🧵

https://greencb.co/3KQb2YA

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Green Central Banking @greencb.bsky.social · 12h

#GreenCentralBanking roundup:

🇧🇷 Brazil breaks new ground, centring social justice in sustainable taxonomy
❌ Net-Zero Banking Alliance dissolves after mass exodus
🇪🇺 EU transition plan requirements face elimination amid political divisions

And more 👇

greencb.co/4oaAiXY

Roundup: Brazil’s groundbreaking sustainable taxonomy a ‘strategic opportunity’, says Baker McKenzie

Brazil’s taxonomy links social and green goals, the Net-Zero Banking Alliance falls, and the EU parliament is divided over transition plans.

greencb.co

Green Central Banking @greencb.bsky.social · 14h

Across our coverage, one message stands out: the omnibus risks diluting Europe’s sustainability framework just when reliable, comparable data is most needed. 🌍📊

Follow @greencb.bsky.social for updates on sustainable finance and central banking.

Green Central Banking @greencb.bsky.social · 14h

Now the @europarl.europa.eu’s @juri.europarl.europa.eu is due to vote 🗳️ on 13 October.

The outcome will shape the Parliament’s stance ahead of talks with the Council.

Lawmakers fail to reach agreement on sustainability Omnibus as key vote looms

Lead Parliament negotiator has proposed two options, one of which he says has majority backing.

www.responsible-investor.com

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Green Central Banking @greencb.bsky.social · 14h

🌍 @globalwitness.org’s @beatebeller.bsky.social added: financial institutions “must not remain exempt from accountability for their impact on people and planet.”

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Green Central Banking @greencb.bsky.social · 14h

A letter from 30 groups — including @shareaction.bsky.social, @oxfameu.bsky.social, @ourfinancialsecurity.org & the @eeb.org — urged #Brussels to keep the CSDDD’s financial review clause. ✉️

Investors urge Brussels to keep financial review clause in CSDDD

A group of 30 investors and human rights advocates urged European lawmakers to keep a financial review clause in the CSDDD which would be removed under the omnibus proposal.

greencb.co

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Green Central Banking @greencb.bsky.social · 14h

Hans Stegeman of Triodos Bank warned that, under “simplification”, key rules are being “diluted or postponed.” ⚠️

He argued that sustainability is “a strategic imperative” — and that smart regulation enables competitiveness.

Why EU omnibus should rebalance the costs of sustainability

Simplification of EU reporting rules could make transparency less costly, says Hans Stedeman of Tridos Bank, but confusing greater clarity with deregulation is dangerous.

greencb.co

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Green Central Banking @greencb.bsky.social · 14h

Christine Lagarde (@president.ecb.europa.eu) also cautioned that such cuts would “limit the availability of firm-level data” essential for #ClimateRisk assessment. 📊

Lagarde warns against cutting EU corporate sustainability rules too much

EU omnibus reforms risk limiting the climate data ECB needs to consider risks to financial system.

greencb.co

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Green Central Banking @greencb.bsky.social · 14h

The @ecb.europa.eu, Dutch AFM & @eba.europa.eu warned that cutting back the #CSRD and #CSDDD could raise financial risks 📉 and reduce the data needed for effective supervision.

EU regulators warn omnibus proposal could increase financial risk

The EU’s omnibus proposal could increase financial risk and make it harder for the bloc to transition to a green economy, regulators warn.

greencb.co

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Green Central Banking @greencb.bsky.social · 14h

MEP @spietikainen.bsky.social said raising reporting thresholds would exclude 80% of companies under the #CSRD — weakening the EU Green Deal 🌱 and creating uncertainty.

EU omnibus proposal will undermine climate rules, says MEP Pietikäinen

The EU’s omnibus proposal will not only undermine the bloc’s climate efforts but could create more bureaucracy, says Finnish MEP Sirpa Pietikäine.

greencb.co

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Green Central Banking @greencb.bsky.social · 14h

Our Sustainability Omnibus Podcast, hosted by @moriahcosta.bsky.social & @nixonsimon.bsky.social, set the stage for the debate

From asset managers to MEPs, warn that simplification could weaken the EU’s sustainability framework & global leadership

The Sustainability Omnibus Podcast

The Sustainability Omnibus Podcast is a limited edition series to help listeners understand the complex nuances of the EU simplification agenda on

greencentralbanking.com

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Green Central Banking @greencb.bsky.social · 14h

Elderson’s warning comes as @ecb.europa.eu research shows that extreme weather 🌧️ could cut up to 5% from euro-area output over the next five years — a risk on par with the great financial crisis.

ECB's Elderson: No stepping back on climate

The ECB will take a business-as-usual approach to bank climate risk management, but proposed changes to CSRD could challenge those efforts, said ECB executive member Frank Elderson.

greencb.co

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Green Central Banking @greencb.bsky.social · 14h

Frank Elderson cautioned that “excluding too many firms from the #CSRD could impair the availability of comparable information about important parts of our economy.”

That’s why we’re revisiting a year of @greencb.bsky.social coverage on the EU’s proposed sustainability omnibus reforms. 🧵

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Green Central Banking @greencb.bsky.social · 1d

And a big thanks to everyone else who participated and contributed to the event. 🙏

Green Central Banking @greencb.bsky.social · 1d

However, World Bank’s @espagneetienne.bsky.social shared his research, which shows that while Chinese firms operate many mines, the ‘equitable ownership’ is frequently held by American investors, leaving developing countries with limited gains from their own resources. ⚒️💰

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Green Central Banking @greencb.bsky.social · 1d

Another theme at the conference was geopolitics.

Dinita Setyawati of @ember-energy.org, highlighted how China’s south-south cooperation has secured its strategic partners across East & SE Asia & the Global South. 🇨🇳

While the US is viewed as out of touch with local priorities.

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Green Central Banking @greencb.bsky.social · 1d

Panellists also considered whether sustainability overlooks real people?

🇪🇺 In the EU, social-risk reporting has become overly complicated, obscuring real harms such as worker exploitation or community costs.

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Green Central Banking @greencb.bsky.social · 1d

One of the questions at the debate: does meaningful sustainability threaten competitiveness by creating unnecessary complexity & compliance costs?

Eila Kreivi of Finnvera, described how well-intended proposals often become tangled in political battles.

#EUOmnibus

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Green Central Banking @greencb.bsky.social · 1d

Sustainability leaders gathered in #Madrid for the “finance on the brink” conference — by @greencb.bsky.social, EBI & @uc3m.es — capturing a pivotal moment for #GreenFinance. GCB’s @ingridwss.bsky.social takes a look at the key discussions from the event. 👇

Finance on the brink: central banking tackles sustainability’s hard truths

Madrid’s central banking summit confronted the hard truths of sustainable finance, urging bold innovation and pragmatic realism to navigate climate and regulatory challenges.

greencb.co

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Green Central Banking @greencb.bsky.social · 1d

Climate-related social risks stem from climate impacts & policy shifts — driving inflation, migration & instability. 🌍⚖️

Alexander Weston & Judith Tyson of Just Transition Finance Lab say central banks must recognise these risks to strengthen financial stability.💰

‘Social macro’: a new frontier for climate risk

Addressing climate social risks is key for climate policy and financial risk management, write analysts Alexander Weston and Judith Tyson.

greencb.co