CBK Governor at the 2nd Sustainable Investment Forum: Managing climate risks and promoting green finance are crucial for financial stability and sustainable development

The Governor of the Central Bank of the Republic of Kosovo (CBK), Mr. Ahmet Ismaili, participated in the 2nd Sustainable Investment Forum, where he delivered a keynote speech emphasizing the importance of addressing climate risks and the opportunities of sustainable investments for a stable financial system. This Forum, organized by the European Investors Council, gathered high-level representatives from local and international institutions, with the presence of the Caretaker Prime Minister of the Republic of Kosovo, Mr. Albin Kurti, and the Head of the EU Office in Kosovo, Ambassador Orav.

In his remarks, Governor Ismaili noted that although there are ongoing discussions about the extent of central banks’ involvement in climate issues, the prevailing stance today is that this topic is not solely an environmental awareness issue. Climate change has become a source of systemic risks that threaten financial stability, the functioning of markets, long-term economic development, and social well-being.

Exposure to both physical and transition risks directly impact the performance and asset quality of financial institutions, businesses, and household economies. These risks are real and tangible, affecting citizens’ lives and the solvency of economic actors, thus requiring increased attention and care.

In this context, Governor Ismaili highlighted those banks and other financial institutions will increasingly face the need to manage these risks and support the green transition, thereby transforming sustainability into a new value within the financial market.

However, financing the green transition and economy also brings opportunities, which the CBK considers in line with its mandate and strategic plan. In Kosovo, bank lending remains the main source of private sector financing, with over 85% of deposits currently credited to the economy due to the absence of capital markets. Therefore, through sustainable financing in non-traditional sectors of the economy, we contribute to sustainable investments and reduce concentration risk while lowering environmental risks.

In this regard, the CBK has undertaken several concrete initiatives to advance the regulatory framework and promote sustainable finance, from joining international networks to drafting roadmaps and guidelines that help manage risks and support the financing of large, capital-intensive projects, including clean energy initiatives.

Governor Ismaili also emphasized that the CBK’s commitment goes beyond policymaking and includes building institutional capacities and supporting the financial sector through education, participation in forums, and international networking. He noted that events such as this Forum are part of that spirit of engagement and cooperation.

In his conclusion, Governor Ismaili stressed that managing climate risk is a matter of protecting value, preserving stability, and shaping the future of finance in a decarbonizing world. Therefore, the CBK’s engagement will focus on strengthening its supervisory role, supporting capacity-building in the financial sector, and helping to develop a resilient financial infrastructure that supports the green transition. Through early action, institutional coordination, and shared commitment, we can build an economy that is competitive, sustainable, and fair for future generations, he concluded.