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North Macedonia’s national bank to improve climate risk management practices with EIB support

The European Investment Bank (EIB) announced on Wednesday (21 February) that its financing arm for investments outside the EU EIB Global has signed a cooperation agreement with the National Bank of North Macedonia.

As part of the agreement, EIB is expected to provide advisory services with the aim of improving the national bank’s regulatory and supervisory climate risk management practices, as well as reporting capacities of North Macedonia’s financial sector. These activities are expected to help local banks understand the climate risk exposure of companies in North Macedonia and support their sustainability practices.

“As part of Team Europe, we are delighted to be an active contributor to North Macedonia’s green transition and sustainability goals. The agreement with the National Bank is based on excellent collaboration established in the last few years. It complements other EIB activities in North Macedonia such as the green credit line signed in 2023 with the Development Bank of North Macedonia (DBNM), as well as sustainable transportation, energy efficiency and environmental protection projects under the Economic and Investment Plan,” said EIB Vice-President Kyriacos Kakouris. “These activities bear great importance for North Macedonia, which aims to become part of the EU family and aligns its activities with the Green Agenda and the Paris Agreement.”

The agreement was signed under the Greening Financial Systems (GFS) programme, which aims to support the transition to net zero and climate-resilient financial systems conducive to unlocking climate action and promoting green investments among small businesses. As a member since 2022, North Macedonia has committed to an 82 per cent reduction in greenhouse gas (GHG) emissions by 2030 compared to 1990 levels.

“There are three features which are particularly suitable to describe current German-Macedonian relations: firmly European, economically viable, climate-oriented. The Greening Financial Systems programme illustrates this perfectly. The financial sector plays a crucial role in bringing us closer to a sustainable, resilient, resource-conserving global economy. Without investment in climate resilience, sustainable economies will not be possible in the future. Therefore, climate action is a fundamental pillar of German foreign policy. I am grateful to the European Investment Bank and the National Bank of North Macedonia for being our partners in this endeavour,” said German Ambassador to North Macedonia Petra Drexler.

EIB Global also aims to contribute to the Declaration on the Just Transition Investment Platform for North Macedonia aiming to ensure the country’s deployment of 1.7 gigawatts (GW) in new renewable energy capacity until 2030. North Macedonia is also set to be one of the pilot countries where the EIB plans to implement its new just transition approach, aiming to increase financing and advisory services in support of decarbonisation at the global level.

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