North Macedonia advances climate finance under the GFS programme

Under the Greening Financial Systems (GFS) programme, a market study surveyed over 300 medium and large enterprises across key industries in North Macedonia to assess sustainability practices, climate risk exposure and green finance uptake. The survey revealed insufficient levels of awareness about the green economy: only 7% identified as experts, while 30% were entirely unfamiliar with the concept. Despite this gap, over a quarter of respondents saw competitive advantage and revenue growth as key benefits of transitioning to greener practices. Insights from interviews and focus groups are informing the development of a climate risk disclosure framework for banks, expected to be finalised later in 2025.

Implemented in partnership with the National Bank of the Republic of North Macedonia (NBRNM), the programme has delivered targeted training and introduced the Climate Risk Navigator tool, enabling the central bank to assess climate-related risks and guide financial institutions in aligning with global standards.

“The GFS programme goes beyond technical assistance; it’s a strategic investment in North Macedonia’s financial resilience. By assessing market conditions and equipping regulators and banks with tailored tools to manage climate risks, it fosters innovation, investment and inclusive growth,” said EIB Global Representative to North Macedonia Björn Gabriel.

Governor of the National Bank of North Macedonia Trajko Slaveski emphasised that the programme represents a crucial step toward advancing sustainable economic growth. By integrating climate and environmental risk considerations into strategic objectives, it strengthens the resilience and long-term stability of the country’s financial system.

“Technical assistance through our cooperation with EIB Global plays a pivotal role in strengthening institutional capacity, fostering knowledge exchange and adopting best international practices. This support is instrumental in enabling an effective transition to a green economy and ensuring preparedness for the challenges that lie ahead,” said Governor Slaveski.

Beyond regulatory support, tailored technical assistance is being provided to Komercijalna Banka, NLB Banka, ProCredit Bank and Sparkasse Bank to help integrate climate scenarios into their business strategies. These efforts ensure that financial institutions are better positioned to identify green investment opportunities among small businesses and advise them on sustainable business strategies. Launched in May 2024, the programme is funded by the International Climate Initiative (IKI) on behalf of the German Federal Ministry of Economic Affairs and Climate Action (BMWK), while contributing to the NDC Partnership.