12 Jan 2024
Namibia's central bank has joined the prestigious Network for Greening the Financial System (NGFS), a group of central banks and regulators committed to promoting financing for environmental projects in response to climate change.
The Bank of Namibia (BoN) announced on 11 January 2024, it was unanimously appointed as a plenary member of the NGFS, which has 134 members and 21 observers, with effect from December 27, 2023.
The NGFS acts as a global body working together to strengthen the collective response needed to achieve the goals of the Paris Climate Agreement.
“The aim is to strengthen the role of finance and promote the mobilisation of capital for green and low-carbon investments.” Naufiku Hamunime, head of international relations and sustainability at the central bank, said.
During the annual conference of all central bank heads of the SADC states in Swakopmund last September, the draft of a new strategy and sustainability in financial systems was discussed.
Guest speaker was Dr. Sabine Mauderer, board member of the German Bundesbank in Frankfurt.
Mauderer emphasised the challenge of stimulating private financing to support adaptation to climate change. She recommended that the central banks of the Southern African Development Community (SADC) join the Network for Greening the Financial System.
The BoN stated that Namibia, which is disproportionately vulnerable to the impacts of climate change, “recognises the critical importance of aligning its financial system with green principles and we are ready to actively develop policies to support climate risk mitigation, including adaptation within the financial sector while improving the resilience of the financial system.”
According to the Bank's governor, Johannes Gawaxab, the BoN's inclusion in the NGFS is a significant step toward Namibia's commitment to sustainable economic growth, linking national efforts with the country's highly ambitious green hydrogen initiatives.
“We recognise the gravity of the climate-related challenges in our region, but we are up to the task of driving positive change, fostering innovation in the financial system and contributing to global efforts to combat climate change,” he said. The NGFS will provide the tools, knowledge and collaborative platform needed, to accelerate progress toward 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,” Gawaxab said.
Brigitte Weidlich
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