The Bank of Namibia (BoN) has announced its membership of the Network for Greening the Financial System (NGFS), a grouping of central banks and prudential supervisory authorities committed to advancing environmental and climate risk management in the financial sector globally.
BoN was appointed plenary member, from 27 December 2023, joining the ranks of 134 members and 21 observers within the network.
The NGFS, which unanimously approved BoN’s application, serves as a global body working collaboratively to strengthen the collective response required to meet the goals of the Paris Agreement. It aims to enhance the role of the financial system in managing risks and mobilising capital for green and low-carbon investments.
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.
The 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.
“The bank’s acceptance into the NGFS is a momentous step forward in our commitment to sustainable economic growth dovetailing national efforts which has put Namibia on the map, by providing solutions to the global decarbonisation effort through the pursuit of the country’s highly ambitious green hydrogen initiative,” said BoN governor Johannes !Gawaxab.
He added that the bank acknowledges the severity of climate related challenges in the region, but it is equal to the task to drive positive change, foster innovation within the financial system, and contribute to the global effort to combat climate change.
To reinforce its dedication to sustainability, BoN recently established a dedicated sustainability function to spearhead and coordinate its sustainability initiatives in line with commitments set out in the bank’s strategic plan (2022-2024).
By joining the NGFS, BoN 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, it 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.
Joining the network reinforces this commitment and will provide the tools, knowledge, and collaborative platform needed to accelerate progress toward a more sustainable future.