The Central Bank of Egypt (CBE) announced that is joining the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) — one of the most important bodies specialised in the field of green economy in the world.
This new step comes in light of the state’s strategy to achieve sustainable development and its belief in the vital role of the banking sector and the CBE in supporting the green economy and applying the best international best practices in this field.
According to a statement by the bank on Monday, the NGFS includes 114 members of the supervisory bodies of the financial and banking sectors in the world. This includes central banks, bank associations, and financial supervisory bodies from around the world.
This network works to achieve the goals of the UN for sustainable development and the principles of the Paris Climate Accords.
It also aims to enhance the role of the banking sector in managing environmental and climate change risks and pumping capital into green projects through exchanging experiences and applying the best international practices.
Joining the NGFS is an important step that adds to the efforts of the CBE in maintaining banking stability and promoting a green economy as per the state’s directions in achieving sustainable growth in all fields as well as providing the necessary funding for projects that contribute to achieving the desired development.
This step is one among many taken by the CBE in this regard, as it issued in July of 2021 the guiding principles for sustainable financing, the fourth of which stipulates “managing the risks of climate change,” which aims to reduce the risks arising from climate change and encourage green project financing to address the problems caused by climate change.
The CBE has launched many environmental initiatives to promote a green economy by making available specific amounts for banks to use in granting credit facilities to customers under the umbrella of these initiatives at low interest rates.
These initiatives include the initiative to replace vehicles that use dual fuel systems, the initiative to expand the establishment of natural gas stations, the modern irrigation initiative, the initiative to equip bakeries with gas-operated stoves, and the initiative of small and medium enterprises, which includes new and renewable energy.
It is worth mentioning that a green economy reinforces the efficiency of many sectors such as energy, agriculture, waste management, and water, as well as projects that contribute to creating job opportunities, thus reducing poverty and raising the standard of living.
This is in addition to increasing the competitiveness of the national economy along with its role in reducing pollution and environmental degradation.