Governor Ismaili at the Forum for Sustainable Finance: The CBK committed to strengthening financial stability related to environmental risks in the Republic of Kosovo

With the co-organization of the Central Bank of the Republic of Kosovo (CBK), the Association of Banks of Kosovo (ABK), the International Financial Corporation (IFC) and the Network for the Sustainability of Banks and Finances, in partnership with the Swiss State Secretariat for Economic Affairs (SECO) , the Forum for Sustainable Finance was held for the first time in Prishtina.

The Governor of the Central Bank of the Republic of Kosovo, Ahmet Ismaili, in the opening speech of this forum, has emphasized that the CBK is committed to strengthening efforts to improve the sustainability of the financial system in our country, particularly in relation to environmental and climate-related risks.

He added that the CBK has drawn up a strategy that will contribute to strengthening and regulating the practices of banks to increase financial stability in the country.

“The actions of the Central Bank of the Republic of Kosovo to address environmental risk will be directed towards strengthening the regulatory framework and directives of the European Union and Basel standards, strengthening supervisory practices, including the evaluation and full understanding of banks’ exposure to climate risks”, stated Governor Ismaili.

Governor Ismaili also emphasized that CBK will work on capacity building in order to adapt to climate change and mitigating the risks of climate change.

“The Central Bank of the Republic of Kosovo will work on increasing internal capacities, enhancing cooperation with responsible local institutions, for mitigating and adapting to climate change, taking into account the international commitments of the Republic of Kosovo”, emphasized Governor Ismaili in this forum.
“Financial education and broader communication through participation in international conferences, workshops, forums with the aim of expanding expertise and knowledge in the field of climate risks, are part of the CBK plan,” he added.

Governor Ismaili stated at this international forum that the central banks needed to take action against the climate-related financial risks.

“Banks are potentially exposed to climate-related financial risks, regardless of their size, complexity or business model. Therefore, central banks, regulatory authorities, financial institutions and other policymakers have seen the need to act against climate-related financial risks”, emphasized Governor Ismaili.

In conclusion, Governor Ismaili stated that the environmental commitments of the Republic of Kosovo are in line with the strategy of the European Union, since the country was granted the potential candidate status for membership in this bloc.
The Assembly of the Republic of Kosovo has approved the Energy Strategy of the Republic of Kosovo 2022-2031, which envisages a stable energy sector integrated into the pan-European market and guaranteeing energy security and affordability for citizens.

We recall that the Republic of Kosovo was one of the six Western Balkan states that signed the Sofia Declaration in November 2020, where the countries recognized the European Green Deal, as an initiative for the Green Agenda for the Western Balkans (GAWB).