Why Are Central Banks Increasingly Focusing on Climate Change? The Network for Greening the Financial System (NGFS) now counts more than 100 members - including the largest central banks, suggesting climate change is no longer trivial for monetary policy makers. Potential disruptions from climate change arise from two dimensions: 1) Physical risks – that is damaging weather events related to hotter temperatures, and 2) Transition risks – costs arising from climate policies to green the economy. The NGFS work has recognized those risks have implications for financial stability and monetary policy, the bread and butter of central banks.