Skopje, 13 December 2024
The National Bank has recognized the climate-related risks in a timely manner, taking a proactive stance by embedding climate-related risks and green economy in its strategic goals. This was highlighted in the meeting between the National Bank Governor Anita Angelovska Bezhoska and Amra Omeragic and Slaven Popovic, representatives of Finance in Motion, advisor to Green for Growth Fund.
"The National Bank has contributed to promoting green financing through a range of activities, including monetary measures. Green loans are constantly increasing in the banks’ portfolios, reaching a growth of Denar 1.4 billion, or 7.4% in the third quarter of this year, compared to the same period last year. Green loans to total loans ratio is still relatively low. However, from the end of 2019 through the third quarter of 2024, they registered a growth from 2.2% to 4.4%”, said Governor Angelovska Bezhoska.
The meeting underlined the successful cooperation, and discussed future joint activities. Namely, under the auspices of the Green for Growth Fund and in cooperation with Finance in Motion and Ernst & Young experts, the National Bank hosted the second ESG capacity building workshop on Management of the Impact of Environmental, Social and Governance Performance (ESG), Risks and Opportunities. The workshop was dedicated to building up central bank capacities for multifaceted ESG impacts, particularly focusing on regulatory, reporting and supervisory practices in managing climate risks. Once seen as peripheral, ESG factors have become central to decision-making and risk management. Institutions that adapt to changes and the new environment tend to improve resilience, foster sustainable growth and strengthen trust.
“The Green for Growth Fund is proud to partner with National Bank of North Macedonia in promoting green and sustainable finance and greener economy in North Macedonia. Our partnership is geared towards achieving environmental objectives of mitigating climate change through development of clear strategic targets, internal capacity building, and sector awareness raising. These initiatives bring us one step closer in aligning the financial system with the global sustainable development priorities and closing the green financing gap.” said Amra Omeragic, investment manager, Finance in Motion.
The workshop reaffirmed the important role of central banks and financial supervisors in strengthening the financial system resilience to climate-related risks, by supporting and encouraging transition to a sustainable economy. Over the past years, an increasing number of central banks have made climate change a strategic priority and adopted climate risk strategies. Our climate risks management activities have been embedded in the National Bank’s Medium-Term Climate Change Action Plan for 2023-2025, which contains clear roadmaps for specific activities.
The Green for Growth Fund is dedicated to mitigating climate change and promotes sustainable economic growth, primarily by investing in measures that reduce energy consumption, resource use and CO2 emissions. The Fund channels this financing to businesses and households through technical assistance, know-how, and technical expertise to ensure that these investments are successfully implemented and to a high international standard. The Fund operates in 19 markets across Southeast Europe, including Turkey, the European Eastern Neighborhood Region and the Middle East and North Africa.