Bank of Namibia joins the network for greening the financial system to drive sustainability in the Financial Sector

1. The Bank of Namibia is pleased to announce its membership in the esteemed Network for Greening the Financial System (NGFS), a group of central banks and prudential supervisory authorities committed to advancing environmental and climate risk management in the financial sector globally. As of 27 December 2023, the Bank of Namibia has been appointed as a plenary member, joining the ranks of 134 members and 21 observers within the network.

2. The NGFS, which unanimously approved the Bank of Namibia’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 mobilizing capital for green and low-carbon investments.

3. 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 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.

4. “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 Governor! Gawaxab. “We acknowledge the severity of climate related challenges in our region, but we are equal to the task to drive positive change, foster innovation within the financial system, and contribute to the global effort to combat climate change.”

5. To reinforce its dedication to sustainability, the Bank of Namibia 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, the Bank 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.

6. Through its membership, the Bank of Namibia aims to strengthen the domestic financial sectors’ capacity to assess and manage climate-related risks and actively advocate for the integration of sustainable finance principles on the global stage.

7. Joining the Network for Greening the Financial System reinforces this commitment and 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.