Bank of Namibia leads green revolution

The Bank of Namibia (BoN) recently joined the Network for Greening the Financial System, a group of central banks and prudential supervisory authorities committed to advancing environmental and climate risk management in the financial sector globally.

Explaining the decision behind joining the network, the BoN said Namibia was negatively affected by the impacts of climate change.

“Namibia, being disproportionately vulnerable to the effects of climate change, recognises the critical importance of aligning its financial system with green principles. As a semi-arid country facing recurring drought challenges, the negative impacts on food security and underlying macroeconomic risks are profound,” BoN said.

Proactive approach

The central bank would adopt policies to help mitigate the effects of climate change, it said.

“The Bank of Namibia is therefore poised to actively develop policies to support climate risk mitigation and adaptation activities within the financial sector while enhancing the resilience of the system,” it said.

The move to join the network would help Namibia’s financial services sector react positively to climate change.

“Joining the Network for Greening the Financial System reinforces this commitment and will provide the tools, knowledge and collaborative platform needed to accelerate progress towards a more sustainable future. The bank is excited about the potential benefits of joining the NGFS and looks forward to contributing positively to this transformative initiative,” BoN said.