Ethiopia has joined an initiative to green its financial system so the country is better able to withstand climate change shocks.

By joining the Greening Financial Systems (GFS) programme, which is run by the European Investment Bank (EIB),  the National Bank of Ethiopia (NBE) intends embedding climate considerations into the core of the finance sector, reports African Business Communities.

Senior experts from NBE will oversee the implementation of the programme and ensure follow-through.

‘The financial sector has a critical role to play in mobilising the significant finance required for Ethiopia’s transition to a climate-resilient, green economy,’ says NBE governor Mamo Mihretu.

He says the GFS programme ‘will enhance our capacity to guide the sector in adapting to a changing climate and unlocking green investment opportunities’.

The programme will also encourage commercial banks and financial institutions to build green finance capabilities and help them identify viable green projects and reduce exposure to climate-related risks.

27 May 2025
Image: Pexels