Central bank joins green financial system

Johannes !Gawaxab

The Bank of Namibia (BoN) has joined the Network for Greening the Financial System (NGFS) as a member.

The system is a group of central banks and prudential supervisory authorities focused on advancing environmental and climate risk management in the financial sector globally.

As of 27 December 2023, BoN was been appointed as a plenary member, joining the ranks of 134 members and 21 observers within the network.

The NGFS, which unanimously approved the BON’s application, serves as a global body working collaboratively to strengthen the collective response required to meet the goals of the Paris Agreement.

The system aims to enhance the role of the financial system in managing risks and mobilising capital for green and low-carbon investments.

The country recognises the importance of aligning its financial system with green principles.

The central bank is poised to actively develop policies to support climate risk mitigation and adaptation activities within the financial sector while enhancing the resilience of the system.

BoN governor Johannes !Gawaxab recently said the central bank’s acceptance into the NGFS is a momentous step forward in its commitment to sustainable economic growth, dovetailing national efforts which has put Namibia on the map.

“This is by providing solutions to the global decarbonisation effort through the pursuit of the country’s highly ambitious green hydrogen initiative.

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,” he said.

BoN recently established a dedicated sustainability function to spearhead and coordinate its sustainability initiatives in line with commitments set out in BoN’s Strategic Plan (2022-2024).

By joining the NGFS, it seeks to augment its efforts, stay at the forefront of the global dialogue and benefit from the invaluable opportunity to exchange knowledge with like-minded central banks.

Through its membership, the central bank aims to strengthen the domestic financial sectors’ capacity to assess and manage climate-related risks and actively advocate the integration of sustainable finance principles on the global stage.

According to the central bank, joining the NGFS reinforces this commitment and will provide the tools, knowledge and collaborative platform needed to accelerate progress toward a more sustainable future.

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