North Macedonia: EIB Global supports greening of the financial system through dedicated advisory programme

• Under the Greening Financial Systems programme, EIB Global will provide advisory support to the National Bank of North Macedonia and the financial sector.
• The technical assistance will enhance capacities to assess, mainstream and disclose climate-related risks.
• Advisory services are aimed at contributing to the green transition of North Macedonia and the decarbonisation of its economy.

EIB Global, the financial arm of the European Investment Bank (EIB) for activities outside the European Union, has signed a cooperation agreement with the National Bank of North Macedonia under the Greening Financial Systems (GFS) programme. The agreement will enable the provision of advisory services to the National Bank designed to enhance its regulatory and supervisory climate risk management practices, as well as the reporting capacities of the financial sector in the country. These activities will help local banks understand the climate risk exposure of companies in North Macedonia and support their sustainability practices.

The GFS programme 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. It is financed by the German government through the EIB’s International Climate Initiative Fund and implemented in collaboration with the NDC Partnership, a global coalition of countries and institutions collaborating to drive climate action. As a member since 2022, North Macedonia has committed to an 82% reduction in greenhouse gas (GHG) emissions by 2030 compared to 1990 levels.

EIB Vice-President Kyriacos Kakouris, who is responsible for operations in North Macedonia, said: “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. 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.”

Governor of the National Bank of North Macedonia Anita Angelovska-Bežoska pointed out that since 2020, the National Bank has been taking measures and undertaking activities to encourage financing of the green transformation of our economy.

"Measures and activities undertaken to date by the National Bank to encourage green financing, as well as future steps, are contained in the first National Bank’s Medium-Term Climate Change Action Plan. Recently, the National Bank has adopted Guidelines on Managing Climate-Related Risks for banks to strengthen the resilience of the banking system to climate risks. The initial analyses of the assessment of the banking system’s exposure to physical and transition climate-related risks, which rely on the relevant available data, are particularly significant and are set to be expanded upon in the period ahead, along with the preparation of a Review of Green Growth Indicators", said Ms Angelovska-Bežoska.

The GFS programme will be complementary to the technical assistance the EIB is providing to DBNM and commercial banks to support the implementation of the €100 million EIB green credit line for Macedonian companies. This recently launched climate action support programme is intended to build the capacities of the financial sector and small businesses in the area of green finance. This combination of EIB Global’s financial and technical support is designed to contribute to the decarbonisation of the private sector by improving small businesses’ access to finance for energy efficiency and renewable energy projects.

German Ambassador to North Macedonia Petra Drexler stated: “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.”

Head of the EU Delegation to North Macedonia, Ambassador David Geer, remarked: “Financial institutions and regulators can play an important role in actions to combat climate change. By providing tailored technical assistance to the National Bank of North Macedonia and local commercial banks, this programme will help develop efficient green lending and investment in North Macedonia, thereby contributing to the country's climate goals.”

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