The Egyptian central bank joins the Network for Greening Financial System
CAIRO – May 16, 2022: The Central Bank of Egypt (CBE) on Monday announced its membership of the Network for Greening the Financial System (NGFS), which is one of the world’s largest specialized agencies in the field of green economy.
The CBE clarified that this step is part of the state’s strategy to achieve sustainable development and believes in the vital role of the banking sector and the CBE in supporting the green economy and applying international best practices. in this domain.
The NGFS network includes, among its members, 114 members of financial and banking sector supervisory bodies around the world, which include central banks, banking associations and financial regulators from around the world, according to the CBE.
NGFS adopts works to achieve the United Nations Sustainable Development Goals and the principles of the Paris Climate Agreement, and aims to strengthen the role of the banking sector in managing environmental and climate risks and to inject capital into green projects, thanks to the exchange of experiences and the application of international best practices.
Joining the Network for Greening the Financial System is an important step added to the efforts of the Central Bank of Egypt to maintain banking stability and promote the green economy in line with state guidelines aimed at achieving sustainable growth in all areas, as well as to provide the necessary funding for projects that contribute to the achievement of the desired development.
According to the CBE, this step is among many measures taken by the Central Bank in this regard, the Central Bank having published in July 2021 the guiding principles for sustainable financing, the fourth of which stipulates “managing the risks of climate change”. with the aim to reduce the risks associated with climate change and to encourage the financing of green projects that contribute to solving the problems caused by climate change.
The CBE has launched several environmental initiatives to promote the green economy by making specific amounts available to banks to use to extend credit facilities to their customers under these initiatives at low interest rates, including the initiative to replace vehicles with dual fuel work, the initiative to expand the establishment of natural gas stations and the modern irrigation initiative, the initiative to convert bakeries to gas work and the small and medium-sized enterprises initiative, which includes new and renewable energies.
The green economy supports the efficiency of many sectors such as energy, agriculture, waste management and water, and its projects contribute to creating employment opportunities, thus reducing poverty and increasing the level of life, as well as to increase the country’s competitiveness. economy in addition to its role in reducing pollution and environmental degradation.