PRESS RELEASE
Bank of Albania in collaboration with the World Bank organises the High-Level Forum on “Climate, Macroeconomy, and Finance: Navigating Risks and Driving impacts”

On 8 November 2023, the Bank of Albania in collaboration with the World Bank hosted the High-Level Forum on “Climate, Macroeconomy, and Finance: Navigating Risks and Driving impacts”.

The Forum, organised under the auspices of the Governor of the Bank of Albania, Mr Gent Sejko, brought together in a discussion panel representatives from European central banks, international financial institutions, prominent experts, policymakers and economists, with the main goal to involving various actors in a dialogue regarding the challenges from climate change and its impacts on macroeconomy and finance.

Organised in two sessions, the proceedings of the forum were opened by the Governor of the Bank of Albania, Mr Gent Sejko, and the Country Manager of the World Bank, Mr Emanuel Salinas.

In his address, Governor Sejko stated that climate change is no longer a distant threat. On the contrary, it is our present reality that we experience every day, through unpredictable weather events and the intensified probabilities of natural disasters. He added that climate change exerts considerable pressures on the stability of our financial systems as well. In this context, it is more than clear that our financial sector cannot function in isolation from these challenges.

The Governor highlighted that to continue on the path of sustainable growth, our banks should continuously identify, monitor and manage climate-related risks. In addition, banking sector may play a leading role for companies through “channelling funds” along with “the education of clients” towards business models and investments which comply with environmental responsibilities.  The banking system should address this not as a challenge, but as a strategic opportunity.

The Bank of Albania remains steadfast in its commitment to understand and address economic and financial consequences of climate change and the transition to a net-zero economy.  In this context, the Governor announced that the Bank of Albania and the World Bank have designed and launched the “Strategy for the Management and Supervision of Climate-Related Financial Risks to the Financial Sector, 2023-2025”, which is published on the Bank of Albania's website.

The Strategy includes the integration of the latest innovations and best practices, accompanied by the harmonization of our regulatory framework with the EU legislation (Acquis) on sustainable finance. The action plan, which an essential part of this strategy, includes the entire spectrum and numerous responsibilities of the Bank of Albania - from monetary policy, to financial stability and daily operations -, thus confirming once again the Bank of Albania's unwavering commitment to fulfilling its mission to guide the advancement towards green finance, enhance public awareness and contribute to the sustainable development.

The Country Manager of the World Bank, Mr Emanuel Salinas, in his address re-emphasised the fact that global challenges arising from climate change are present and an undeniable reality. In this regard, the World Bank considers as very crucial the preparation by all institutions, and more specifically the banking sector, to best address these challenges in order to ensure both the long-term stability and sustainability of the sector, as well as the mobilization of capital towards the adaptation of the green transition.

Mr Salinas, while thanking the Bank of Albania for the cooperation and efforts so far in this regard, stated that in the face of a global issue such as climate change, a comprehensive approach and commitment of all institutions on a global scale is needed.

During the forum, panellists presented their experiences, concrete cases, best practices, as well as challenges and opportunities presented by green finance, underscoring the critical need to integrate climate into financial decision-making and foster collaboration amid stakeholders.

Discussion in the first session focussed on the comprehensive necessary policies and strategies, by considering green finance as an instrument to guarantee the macroeconomic and financial stability and to ensure a better and more sustainable future for everyone. The second session addressed the importance of collaborative approaches and innovative solutions to effectively manage climate risks within the financial sector.

At the end of his address, Governor Sejko thanked the World Bank for the excellent collaboration and expressed gratitude to the Albanian Government for its continuous support and commitment in addressing these pivotal issues. In addition, He encouraged all participants to translate this knowledge into tangible actions and as creative solutions as possible within their respective institutions and roles, as supervisors and as bankers.