05/07/2021
After numerous activities taken by the Governor and the NBS with a view to promoting the importance of environmental protection, today on 2 July 2021, when it celebrates its 137th birthday, the NBS was officially notified of its admission into the renowned international group of central banks and supervisors within the Network for Greening the Financial System (NGFS).
The NGFS is one of leading movements of financial institutions aimed at greening the global financial system. It currently includes 95 members and 15 observers, among which the largest central banks in the world and international financial institutions. The above notification states that the NBS has shown true commitment to climate risk management and that its membership will have a positive effect on the whole group. The NBS will participate directly in the development of the latest solutions that will help steer the financial system toward environmentally more acceptable and sustainable financing.
“This day couldn’t have been better for the NBS! On the day we celebrate the 137th birthday of our institution, we received yet another international recognition for the efforts we invest into every aspect of our work, for the activities we advocate and aspire to. Economic development and environmental protection must go side by side. They must not be mutually competitive, but complementary! The NBS does not want to be swayed by trends, or to allow or justify improper use of funds raised for green projects (so-called greenwashing). Within the scope of central bank competences, we seek to promote a healthy environment, and it should be noted that investment into green projects and bonds and raising awareness of the importance of environmental protection are the pillars of future economic growth of all countries in Europe“, stressed Governor Tabaković.
The NGFS covers 85% of global GDP and more than 75% of global greenhouse gas emissions. Its membership comprises all leading central banks of both advanced and developing economies, as well as key supervisory institutions at global level (including the Bank for International Settlements, European Bank for Reconstruction and Development, European Investment Bank, International Monetary Fund, World Bank, International Finance Corporation and numerous development banks).
The Network’s purpose is to help strengthen the global response required to meet the goals of the Paris agreement and to enhance the role of the financial system to manage risks and to mobilise capital for green and low-carbon investments in the broader context of environmentally sustainable development.
“The idea of a green economy should be viewed in light of raising awareness of each individual, as well as of each institution – why destroy and then build, why deforest and then reforest? Our task is to design and implement green realism, not green fanaticism. Every assessment of the impact on growth, income, living standard…must take into account the impact on people, their health, working capacity, the impact on future generations and what we are building for them. The economy is an ECOSYSTEM, just like nature, and any distortions there will take their toll. And we do not want to allow it. A natural ecosystem allows to be remedied to a certain extent and to be used as support to economic development. But without it, without the plants that breathe, there can be no people. That is why nowadays the “green swan” is one of the key discussion topics in all economic fora”, underlined the Governor.
During this year’s RE-SET Summit, the NBS clearly stated its view on this matter. Namely, the Governor said following: “The NBS has been analysing these developments for quite some time, keeping abreast of changes in the international environment. As in all other aspects of our work, we always take carefully weighed up measures resulting from comprehensive analyses. Only this way can we be sure that any adjustments we make will be implemented in the right manner. It has never been our goal to take “random” decisions, for the sole purpose of keeping up with global trends. We would never allow the central bank’s activities to be the grounds for greenwashing – an equally present trend where funds earmarked for environmental projects are used for other purposes. This not only devalues individual projects, but also the entire concept of a green economy. The development of the domestic economy, which increasingly relies on production and building of capacities and infrastructure, must not be halted. It should be environmentally supported and oriented, but not threatened. Because the development of a country and the economic standard of its population is symbiotically linked with a higher environmental and living standard – with increased awareness and efforts to achieve the greening of the domestic economy”.
For several years already, the NBS has invested a part of FX reserves into high-quality, safe and liquid green bonds, thereby supporting environmental protection efforts in the most transparent way.
Governor's Office
