WINDHOEK, Jan. 11 (Xinhua) -- The Bank of Namibia (BoN), the central bank, said Thursday that it had joined the Network for Greening the Financial System (NGFS), a move aimed at strengthening its environmental and climate risk management in the financial sector.
The NGFS, a group of central banks and supervisory authorities dedicated to promoting sustainable practices, recently appointed BoN as a plenary member. As of Dec. 27, 2023, the total number of members and observers stands at 134 and 21, respectively, according to the central bank's statement.
The NGFS, which unanimously approved BoN's application, serves as a global collaborative body working towards the goals of the Paris Agreement. It aims to reinforce the financial system's role in managing risks and mobilizing capital for green and low-carbon investments.
"The bank's acceptance into the NGFS is a momentous step forward in our commitment to sustainable economic growth, dovetailing national efforts that have put Namibia on the map by providing solutions to the global decarbonization effort through the pursuit of the country's highly ambitious Green Hydrogen initiative," said BoN Governor Johannes Gawaxab.
Despite regional climate challenges, Gawaxab expressed BoN's determination to advance positive change, foster innovation in the financial system, and contribute to global climate change mitigation efforts. To reinforce its commitment to sustainability, BoN recently established a dedicated Sustainability Function aligned with its 2022-2024 Strategic Plan.
"By joining the NGFS, the bank aims to augment its sustainability initiatives, stay at the forefront of the global dialogue, and exchange knowledge with like-minded central banks," he added.
Recognizing Namibia's vulnerability to climate change, particularly as a semi-arid country grappling with recurrent drought challenges, BoN acknowledges the critical importance of aligning its financial system with green principles. It looks forward to positively contributing to this transformative initiative and the potential benefits of being part of the NGFS. ■
