Greening Financial Systems Programme

In order to shift overall financial flows to sustainable investments, the financial sector and specifically financial regulators play a key role. In this regard, this project supports central banks and supervisors to better account for climate related risks and make use of the regulatory measures available to them to support a shift of overall financial flows. The project thereby promotes net zero and climate-resilient financial systems that ultimately will support the private sector in deploying climate-related and environmentally sustainable investments. The project is part of the initiative “Readiness support for greening central banks” of the NDC Partnership to support central banks and other financial regulators in developing countries to take climate into account.

Project data

Countries: Georgia, Kenya, Ethiopia, Nigeria, Armenia, North Macedonia, Rwanda, Albania
IKI funding: 30,000,000.00 €
Duration: 01/2022 till 12/2027
Status: open
Implementing organisation: European Investment Bank
Political Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
Online: https://www.eib.org/en/products/advisory-services/gfs/index

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State of implementation/results

Launch of the initiative at COP 26 in Glasgow together with NDC-P.
Development and implementation of an online course. The aim of the course is to strengthen the capacities and understanding of banks and central banks in emerging and developing countries regarding the implementation of sustainable and green finance practices.
Organization of a peer-learning workshop with central banks in December 2024.
In Georgia, the project supports the National Bank of Georgia in developing climate change scenarios and stress tests for later use by Georgian financial institutions, in alignment with the EU taxonomy.
In Kenya, the GFS Programme has supported, among others, the Central Bank of Kenya in the development of the Kenya Green Finance Taxonomy and the Climate Risk Disclosure Framework. This work culminated in April 2025 with the publication of these key documents by the Central Bank: “Issuance of the Kenya Green Finance Taxonomy and Climate Risk Disclosure Framework for the Banking Sector” (link: www.centralbank.go.ke/…). In addition, the initiative supports the Central Bank in the development of climate change scenarios and stress testing tools, as well as instruments and approaches that enable effective regulation, reporting, and supervision of the financial sector in the context of climate risk management. Furthermore, up to five financial institutions are receiving tailored support to develop green financial products.
In Rwanda, the European Investment Bank (EIB) and the Bank of Kigali signed a EUR 100 million financing initiative for sustainable agriculture. This initiative is intended to help farmers better cope with the economic, social, and environmental impacts of climate change.
In Armenia, the capacities of the Central Bank of Armenia are being strengthened with regard to green financial instruments and climate risk management. The goal is to transfer this knowledge to the broader Armenian financial sector – for example, through the development of a positive list of eligible green investments and instruments to be used by financial intermediaries for green finance.
In Nigeria and Ethiopia, financial institutions are supported in the implementation of climate risk management strategies and practices, as well as in the development of green financial products. This includes a gender-smart climate finance toolkit designed to support especially women-led small and medium-sized enterprises (SMEs).
In Ethiopia, the GFS Programme was officially launched at the Ethiopia Finance Forum. High-level participants included the Governor of the National Bank of Ethiopia, as well as the EU and German Ambassadors to Ethiopia. On this occasion, technical assistance agreements were also signed.
In North Macedonia, the EIB advises the National Bank on improving its regulatory and supervisory practices in the field of climate risk management, as well as the financial sector’s reporting capabilities. These activities aim to help local banks better understand corporate climate risks and strengthen their sustainability practices.

Latest Update:
07/2025