During the Plenary, the Central Bank of San Marino addressed the issue of biodiversity loss in the Mediterranean Sea and the possible implications of this phenomenon for the financial stability of coastal countries. In particular, it highlighted how environmental degradation, pollution and biodiversity reduction may progressively translate into economic and financial vulnerabilities, with possible effects on asset values, credit quality, insurance exposure and, more generally, the resilience of financial systems of coastal countries.
On this basis, within the framework of the European regional session, the Central Bank of San Marino proposed to initiate a reflection on three possible lines of work: strengthening the analysis of the effects of the loss of biodiversity of the Mediterranean Sea; identifying forms of dialogue with governments, in order to identify and strengthen prevention policies; and evaluating possible forms of cooperation with other regional organizations, including the Union for the Mediterranean.
The proposal is in line with the priorities of the NGFS and its approach based on peer-to-peer discussion, exchange of experience, and development of analytical tools useful for capturing climate and environmental risks to financial stability.
The Central Bank of the Republic of San Marino confirms its commitment to actively contributing to the work of the Network and to developing greater analytical capacity on emerging environmental risks to the financial system.