Guest Contributor | Feb 27, 2024 | 0
Central Bank becomes global green financial system member
Joining the international Network for Greening the Financial System puts the Bank of Namibia in the exalted company of a 134-member group of central banks and prudential supervisory authorities, all committed to address the environmental impact of the global financial sector.
The Bank of Namibia became a member on 27 December 2023.
In a notice released this week, the central bank said its membership now enables it to help develop structures to manage environmental risks in the financial system and to mobilize funding for green investments.
Recognising Namibia’s disproportionate vulnerability to climate change, the bank said it is crucial that the country aligns its financial system with “green principles.”
“As a semi-arid country facing recurring droughts, the negative impacts on food security and underlying macroeconomic risks are profound. The Bank of Namibia is therefore poised to actively develop policies to support climate risk mitigation and adaptation activities in the financial sector while enhancing the resilience of the system,” the bank stated.
Central bank Governor, Johannes !Gawaxab, said “We acknowledge the severity of climate related challenges in our region but we are equal to the task to drive positive change, foster innovation within the financial system, and contribute to the global effort to combat climate change.”
The bank recently has adopted a dedicated Sustainability Function to drive and coordinate its sustainability strategies in line with commitments set out in the bank’s Strategic Plan for 2022 to 2024.
Through its membership, the Bank of Namibia boosts the Namibian financial sectors’ capacity to assess and manage climate-related risks.