The Central Bank of the Republic of Kosovo (CBK) has approved the Strategic Roadmap for the Management and Supervision of Climate-Related and Environmental Risks in the Financial Sector (2025-2027), which is in line with the objectives of the CBK Strategic Plan to establish a regulatory and supervisory framework that addresses climate and environmental risks.

The Strategic Roadmap is in line with the commitments of the Republic of Kosovo on the environment as a potential candidate for membership in the European Union and a signatory of the Sofia Declaration, as well as the activities of the program of Republic of Kosovo with the IMF under the Sustainability Arrangement (RSF), which among other things aims at climate and environmental reforms to increase resilience to crises and transition risks.

The Strategic Roadmap has been drafted taking into account the most relevant international and European practices in the regulatory and supervisory framework of climate and environmental risks, including those from European and international regulatory and supervisory institutions. The roadmap is aligned with the aforementioned practices in terms of regulatory and supervisory expectations for the identification, assessment, governance, management and control of climate-related risks to which financial institutions are exposed.

To address climate-related financial risks within the financial sector, the CBK’s main objective is to ensure that banks, non-bank financial institutions and insurance companies properly identify, govern, measure, manage and control climate-related risks, in accordance with the best practices set out in the roadmap.

The Strategic Roadmap was developed with the support of the World Bank’s Financial Sector Advisory Centre (FinSAC) and is based on regulatory, supervisory, financial stability principles and actions, and the expansion of expertise and knowledge in this area.

In line with the adoption of the strategic roadmap, the CBK has previously also undertaken concrete steps related to the green agenda where:

  • It has joined the Sustainable Banking and Finance Network (SBFN), as an opportunity to access advanced information and training that helps build capacity and adopt the necessary regulatory instruments for the financial sector, related to climate risks and ESG standards;
  • It has adopted the Guideline for Reporting Credit Exposures by Banks to Companies Exposed to Transition Costs Related to the Implementation of the Carbon Cap Regulation Mechanism, which requires the collection of the necessary data regarding these risks and their potential impact on banks, on 3 April 2024;
  • It has advanced its investment policies including sustainability financing instruments, in accordance with the undefined criteria for sustainable finance; and
  • It has engaged in supporting the financial sector and in capacity building through participation in conferences, workshops, forums with the aim of expanding expertise and knowledge in the field of climate risks.

The CBK thanks the International Monetary Fund and the World Bank for their continued support towards the capacity building and the advancement of the regulatory and supervisory framework in the function of financial stability.

Lajmi i kaluar CBK approves the Advisory Letter on Syndicated Loans
CBK approves the Advisory Letter on Syndicated Loans
Lajmi i radhës The Governor of the CBK participates in the founding meeting of the Steering Group for SEPA implementation led by the Directors General from the European Commission
The Governor of the CBK participates in the founding meeting of the Steering Group for SEPA implementation led by the Directors General from the European Commission
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