MAS and BIS Roll Out Project Viridis to Assist in Monitoring Climate Risks
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The Bank for International Settlements (BIS) Innovation Hub and the Monetary Authority of Singapore (MAS) have created a plan called Project Viridis. This climate risk platform is made to help financial authorities find, watch, and manage climate risks in the economic system.
Seeing the financial risks from climate change and the move to a low-carbon economy, central banks and monetary authorities are now asked to ensure they watch over climate-related rules.
BIS Seeks To Address The Challenges Posed By Climate Change
The complicated nature of climate change, its worldwide impact, and the different ways countries try to lessen its effects make it hard to monitor and study climate-related financial risks. In response, BIS and MAS started Project Viridis to look into creating a climate risk platform.
This platform uses existing data sources to give early ideas about entities that might face climate-related financial risks. Its design allows it to add improvements and match international climate data and measures, giving better ideas as time passes.
Important parts of the platform include seeing emissions across systems and institutions and putting together reported and guessed emissions from important partners. It also shows where assets are located to check risk exposure from changes in carbon pricing and physical dangers.
The report describes how the platform will work as more data and methods are available. By putting together rules and climate data, Project Viridis shows how authorities can learn about financial risks linked to climate change.
Language techniques remove important information from company reports, aiding authorities in making first opinions about financial institutions’ risk levels. It also enables authorities to spot areas for further study.
BIS Aims To Empower Financial Authorities In Managing Climate-Related Financial Risks
Project Viridis was initially unveiled during BIS Innovation Hub’s plan in January 2022. As its main structure, the Viridis platform uses the Ellipse Data and Knowledge Platform (EDKP), which the MAS made under Project Ellipse and BIS Innovation Hub Singapore Centre.
The EDKP helps bring together organized and unorganized information from different places and is being improved by over 15 central banks and financial regulators worldwide. The final report on Project Viridis gives more detailed information about the platform and how it can be used.
Maha El Dimachki, Head of the BIS Innovation Hub Singapore Centre, stated that the impact of climate change on the global financial landscape is becoming more robust. She emphasized that flexible and forward-looking plans are more critical than ever.
Dimachki added that Project Viridis helps financial authorities understand they need to include new climate risks in their analysis – and so, help make global financial safety better.
