BIS and MAS partner to develop blueprint for climate risk framework
The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have teamed up to explore how the integration of climate and regulatory data can offer insights into climate-related financial risks.
BIS and MAS have come together to develop the Viridis platform
Named Project Viridis, the two organisations have developed a roadmap for a climate risk solution that aims to help central bank and financial authorities “identify, monitor and manage climate risks in the financial system”.
First announced in 2022, the Viridis platform leverages the Ellipse Data and Knowledge Platform (EDKP), which was engineered by the BIS Innovation Hub Singapore Centre and MAS under Project Ellipse.
The “blueprint” provides the features and metrics required for a climate risk platform, identifying that information and data on physical risk exposure, financed emissions, and “forward-looking assessments under different climate scenarios” as key for any effective climate risk analysis tool.
The Viridis platform was born out of a “need for adaptive and forward-thinking strategies” in response to “the impact of climate change on the global financial landscape”, states Maha El Dimachki, head of the BIS Innovation Hub Singapore Centre.
This is not the first collaboration between the two organisations. For instance, Project Mariana, launched in 2022, saw BIS and MAS join other financial institutions in testing the cross-border settlement capabilities of wholesale central bank digital currencies (CBDCs) across three major global markets.
