CBJ: Green finance a ‘strategic’ necessity for banking future

Activities of the second edition of Green Finance Forum "GREEFIN 2024" launched Tuesday, themed: "Green Finance: A Strategic Necessity for the Future of Banks." Speaking at the event, Governor of the Central Bank of Jordan (CBJ), Dr. Adel Sharkas, confirmed that climate change has become a "key" issue at the global level due to its related social, environmental and economic risks. Sharkas said this "important" forum aims to enhance dialogue and cooperation within the banking sector and stakeholders to develop and activate green financing initiatives in the Kingdom. Climate change received "early and significant" attention at the global level, as multiple efforts were made to confront its repercussions and adapt to its potential impacts on environmental systems and economic sectors, according to Sharkas. Additionally, he said one of the crucial issues being discussed now is the impact of climate change on the financial sector, the related risks and the mechanism to identify, assess and manage these challen ges. Sharkas pointed out that managing climate change risks requires regulatory authorities to take "exceptional" measures to incorporate these challenges into their supervisory and precautionary policies. Locally, he noted the CBJ realized "early" the importance of preserving the environment and stimulating renewable energy, as the bank included the renewable sector and energy efficiency projects within its financing program to support and finance economic sectors in 2013. In November 2023, he said the CBJ launched the Green Financing Strategy (2023-2028), which was prepared in cooperation with the World Bank. Sharkas indicated that the CBJ joined the Network for Greening the Financial System in October 2021, which aims to strengthen the global response required to achieve the goals of international climate-related agreements and enhance role of the financial system in managing climate change risks and direct capital to green and low-carbon investments. Sharkas noted this forum will contribute to a "bet ter" understanding of green financing practices, climate change risks, and their impact on the financial system, expressing hope that this event will contribute to achieve "tangible" progress in this "vital" field. Source: Jordan News Agency