In a collaborative effort aimed at addressing climate-related financial risks, the Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have introduced Project Viridis. This initiative seeks to integrate climate and regulatory data to provide insights crucial for managing climate risks within the financial system.
Announced initially in 2022, Project Viridis builds upon the Ellipse Data and Knowledge Platform (EDKP), developed under Project Ellipse by the BIS Innovation Hub Singapore Centre and MAS. The platform aims to assist central banks and financial authorities in identifying, monitoring, and mitigating climate risks across various sectors.
Maha El Dimachki, head of the BIS Innovation Hub Singapore Centre, emphasized the necessity for adaptive strategies in response to the growing impact of climate change on global financial stability. The Viridis platform, she noted, addresses this need by offering comprehensive tools for assessing physical risk exposure, financed emissions, and projections under different climate scenarios.
Earlier collaboration
The collaboration between BIS and MAS extends beyond Project Viridis. In 2022, they launched Project Mariana, which focused on testing wholesale central bank digital currencies (CBDCs) for cross-border settlement capabilities across major global markets. These initiatives underscore the ongoing commitment of both organisations to advancing financial technology and resilience in a rapidly evolving global landscape.
