The Pact will have both a preventive and a corrective “arm”, plus a broad spectrum of measures and sanctions to apply progressively in each. The new surveillance procedure will stress macroeconomic imbalances and suggest the economic policy measures needed to deal with them; in cases of recurrent non-compliance, sanctions may be imposed.
In addition, the NGFS has developed forward-looking scenarios, identified data gaps and assessed how climate change is relevant for monetary policy. Through these activities, clear light has been shone on the relevance of climate change for the financial sector. Concrete tools have been developed and significant progress has been made.