This week, AFI addressed the European Investment Bank’s peer learning workshop for central banks on greening financial systems, held at its headquarters in Luxembourg on 27 October.

The annual event brings together senior representatives of central banks from across Africa, Southeast Asia, Eastern Europe, the Caucasus and the Western Balkans to exchange insights on integrating climate and environmental risk oversight into central banking mandates.

“Climate change hits vulnerable groups, including small businesses, small-holder farmers, and rural communities, the hardest,” said AFI’s Head of Inclusive Green Finance, Johanan Nyman. “Savings products, green credit, insurance, and effective payment systems can help them mitigate climate impacts while also building more resilient, environmentally sustainable, and stable economies.”

“Central banks across the AFI network have incorporated inclusive green finance (IGF) strategies as part of their mandates through Green Finance Taxonomies, IGF-sensitive National Financial Inclusion Strategies, and national-level green finance roadmaps.”

AFI member, the Central Bank of Egypt (CBE) shared its progress in advancing IGF through sustainable finance guidelines, mandatory reporting requirements, and environmental and social risk management frameworks, emphasizing that effective implementation is as important as regulation itself.

CBE Sub-Governor, Sherif Lokman also underscored the importance of market assessments, coordination with national stakeholders, and international peer learning for an effective and just green transition.

The event was supported by experts from the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), the Luxembourgish Ministry of the Environment, Climate and Biodiversity (MECB), the European Commission, the NDC Partnership, the Climate Bonds Initiative and the Network of Central Banks and Supervisors for Greening the Financial System (NGFS).

AFI recently launched the Port Moresby Compact on Inclusive Green Finance – a voluntary, non-binding framework, endorsed by AFI members and partners, aimed at moving IGF from commitment to implementation.