Greening Financial Systems Programme

In order to shift overall financial flows to sustainable investments, the financial sector and specifically financial regulators play a key role. In this regard, this project supports central banks and supervisors to better account for climate related risks and make use of the regulatory measures available to them to support a shift of overall financial flows. The project thereby promotes net zero and climate-resilient financial systems that ultimately will support the private sector in deploying climate-related and environmentally sustainable investments. The project is part of the initiative “Readiness support for greening central banks” of the NDC Partnership to support central banks and other financial regulators in developing countries to take climate into account.

Project data

Countries: Georgia, Kenya, Ethiopia, Nigeria, Armenia, North Macedonia, Rwanda, Albania
IKI funding: 20,000,000.00 €
Duration: 01/2022 till 12/2027
Status: open
Implementing organisation: European Investment Bank
Political Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
Online: https://www.eib.org/en/products/advisory-services/gfs/index

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State of implementation/results

Launch of the initiative at COP 26 in Glasgow together with NDC-P.
Development and implementation of an online course to strengthen the capacities and understanding of banks and central banks in emerging and developing countries for sustainable, green financial practices.
In Georgia the project supports Georgia’s Central Bank in the development of climate change scenarios and stress tests for the subsequent use of Georgian financial institutions in line with the EU taxonomy.
In Ruanda, EIB and Bank of Kigali signed a EUR 100 million sustainable agriculture financing initiative that will support farmers and agricultural businesses across Rwanda to better withstand the economic, social and business impacts of climate change.
In Armenia EIB offers advisory services to the Armenian Central Bank to build their internal capacities for green finance and climate risk management and transfer this knowledge to the Armenian financial sector, e.g. the development of a positive list of eligible green investments to be financed by PFIs and tools PFIs can use for green lending.
In Nigeria and Ethiopia, FIs are supported in the implementation of climate risk management strategies and practices as well as the exploration and development of green financial products, including a gender-smart climate finance toolkit, which is intended to support financial institutions in promoting women-led SMEs in particular.
In Kenia the initiative assists the Central Bank of Kenia in the development of climate change scenarios and stress tests, as well as instruments and approaches that enable effective regulation, reporting and supervision of the financial sector as part of climate risk management. Further, up to five financial institutions will receive tailored support in the development of green financial products.
In North Macedonia EIB offers advisory services to the National Bank to enhance its regulatory and supervisory climate risk

Latest Update:
12/2024