Why is it in the news?

• Central banks unveiled Project Gaia to assess climate financial risks comprehensively.

 More about the news

• It’s a collaboration between Bank for International Settlements Innovation Hub Eurosystem Centre, Bank of Spain, etc.
• Utilizes generative artificial intelligence (AI), particularly Large Language Models (LLMs), for analysing climate-related risks in the financial system.
• Enables examination of firm carbon emissions, green bonds, and optional net-zero commitment disclosures.
• Enhances accessibility to climate-related disclosures and facilitates efficient data extraction.
• Aims to establish harmonized climate metrics for consistency and comparability in risk assessment.
• Offers scalability and reliability in analysing large volumes of data for comprehensive insights into climate financial risks.