Egypt’s CBE joins int’l Network for Greening Financial System

16 / 05 / 2022

By Marwa Nassar - -

The Central Bank of Egypt (CBE) announced joining the Network for Greening the Financial System (NGFS) which is one of the international bodies specialized in green economy.

The Network for Greening the Financial System (NGFS) is a group of central banks and supervisors committed to sharing best practices, contributing to the development of climate –and environment– related risk management in the financial sector and mobilizing mainstream finance to support the transition toward a sustainable economy.

In a statement on Monday, the CBE took this step within the framework of the state’s strategy for achieving sustainable development.

The bank believes in the pivotal role of the banking sector in promoting green economy and the best international practices in this domain.

The bank said its access to the NGFS is a major stride aiming at enhancing banking stability as well as green economy in accordance with the state’s drive aiming to achieve sustainable growth in all domains, the statement said, adding that the state seeks to secure needed funds for projects that would contribute to realizing the aspired development.

The statement said that this step is part of several measures adopted by the bank within this context as the bank issued in July 2021 the guiding principles for sustainable development that encourages financing green projects.

The bank has also contributed to spearheading several environmental initiatives to enhance green economy, including offering funds for banks to be offered as credit facilities for clients under the umbrella of these initiatives, the statement said.

The overtures launched by the bank also included an initiative for replacing cars to operate by natural gas, an initiative to operate bakeries by natural gas, and an initiative for supporting small and medium sized enterprises to use renewable energy.