structures can alter the risk - return profile of many marginally bankable projects. this can be done through catalytic and concessional funding from the public sector, multilateral development banks, and philanthropic sources to crowd in multiples of private capital. by mitigating a portion of project risks, providing technical assistance, and lending their reputation and expertise, the public sector can help to attract private capital which may otherwise be hesitant to invest. we need to mobilise the financial system to deploy blended finance at scale. the ngfs will contribute to this effort in three ways. we will use our convening power to raise awareness of blended finance and help to bring the relevant parties into the room. we will seek to identify potential regulatory, market or policy barriers that hamper the scaling up of blended finance. we will provide guidance to central banks and supervisors on how they could potentially address these barriers. the ngfs is working on two blended finance deliverables by cop28. first, a handbook on blended finance. it will draw on key lessons from past case studies on blended finance projects and provide practical guidance on how such projects can be scaled up. second, demonstrative blended finance projects. the aim is to spotlight projects that have incorporated mechanisms to promote the scaling of blended finance. we will also categorise the key pain points in some of these projects and draw lessons on how they could be addressed. 3 / 5 bis - central bankers'speeches transition planning across the financial industry, the focus is gradually shifting from commitment to action. this means going beyond high - level net zero commitments to designing credible transition plans that will get us there by 2050. drawing up a credible transition plan requires financial firms to do several things : baseline their financed emissions ; set interim targets based on appropriate science - based sectoral pathways ; engage clients on their own corporate transition plans ; and monitor portfolio and client progress over time. transition plans need to be adaptive to changing circumstances while maintaining ambition. there is uncertainty over the path of various decarbonisation technologies as well as climate - related policies such as carbon taxes and emission standards. the assumptions used in transition plans would need to be continually monitored and adjusted as necessary. the ngfs is examining the role of supervisors in assessing financial institutions'transition plans as well as their transition planning processes. we have done a stock - take of current supervisory frameworks on transition plans. we will share the results of the stocktake with the basel committee on banking supervision and the financial stability

climate events, carbon emissions, energy intensity, and so on. this will include building climate data directories and setting up green finance data hubs in central banks. the ngfs is developing theoretical frameworks and quantitative models to evaluate the impact of climate change on the macroeconomy. policymakers need to better understand the channels by which physical risks and transition efforts can affect the economy. for example, physical risks could negatively affect consumption demand if there is an adverse climate event, while the transition could positively induce investment in climate adaptation technologies, thereby affecting aggregate supply. the ngfs is seeking to better understand how climate change can potentially affect the transmission of monetary policy. climate change could put pressure on banks'balance sheets due to higher credit risk or an abrupt repricing of assets, and ultimately constrain central banks'ability to influence credit conditions in the economy. we need to assess how climate change may affect the neutral rate of interest. a decline in productive capacity could pull the neutral rate down, while large investment outlays for greening the economy could push rates up. the influence of monetary policy on inflation expectations may also weaken, as physical and transition risks intensify and raise underlying price pressures. the climate scenarios developed by the ngfs has allowed more robust assessments of financial stability. given uncertainty around the severity and frequency of climate - related shocks, we need to augment traditional analysis with climate scenarios. more than 30 central banks have used or referenced the ngfs climate scenarios. the imf has also begun to use them to assess the impact of climate change on banking sector stability risks under the financial sector assessment programme. 2 / 5 bis - central bankers'speeches the ngfs aims to make three enhancements in the next iteration of its climate scenarios. increased sectoral granularity and geographical coverage, especially in emerging economies ; inclusion of short - term scenarios, incorporating more adverse tail - risk events such as a sudden policy shock ; and improved representation of acute physical risk. blended finance to get to net - zero by 2050, we have to close a large financing gap. according to mckinsey, net zero by 2050 will require about us $ 9. 2 trillion of investment per year, but only about us $ 5. 7 trillion per year is being invested today. we are more than 35 % short of the annual investment required for net - zero. blended finance will be crucial to unlocking more capital for green and transition projects, particularly in emerging economies. blended financing