Tunisia's Central Bank has introduced a comprehensive roadmap for the period of 2026 to 2030. The plan aims to enhance green finance within the financial system and integrate climate risks into regulatory frameworks. This initiative seeks to bolster the financial sector's ability to cope with climate change impacts and facilitate financing for a transition to a more sustainable economy.
The roadmap is built on four pillars. These include framing climate risk management for banks and financial institutions under the central bank's supervision. It also involves setting data and reporting requirements to establish a uniform reference framework. Furthermore, the plan focuses on developing necessary tools and markets for green finance and promoting coordination and monitoring of the strategy's implementation.
According to the central bank's governor, Fathi Zohair Nouri, this approach aims to progressively and balancedly enhance the Tunisian banking system's capacity to face climate challenges. It also involves accompanying banks and financial institutions in their transition towards more sustainable models. The governor emphasized that climate challenges are a fundamental issue threatening financial stability.
Climate-related risks, such as those from droughts, heatwaves, floods, and coastal erosion, can impact borrowers' ability to repay and provide bank guarantees. The governor also mentioned transition risks associated with stricter trade requirements and access to international financing. An example is the carbon adjustment mechanism at the border, adopted by the European Union, which may pose challenges to economic and financial institutions.
The central bank reaffirmed its commitment to integrating climate risks into its policies and supervisory frameworks. It also aims to leverage opportunities offered by green finance. The governor stressed that establishing effective risk governance, based on better identification, measurement, and enhanced protection, is crucial for supporting the resilience of Tunisia's financial system.
The initiative to develop a roadmap for green finance and climate risk integration aligns with Tunisia's efforts to achieve sustainable economic growth. The country's economic outlook includes a projected growth rate of 3.1 percent for 2027. The central bank's efforts also complement recent financial measures, such as a line of credit worth 20 million dinars to support loans for low-income and vulnerable groups.
The central bank's move reflects a broader strategy to address climate-related financial risks and promote sustainable finance in Tunisia. By implementing this roadmap, the bank aims to ensure that the country's financial sector is better equipped to manage climate-related challenges and support a transition to a more sustainable economy.
Key points
- The Central Bank of Tunisia has launched a 2026-2030 roadmap to enhance green finance and integrate climate risks into the financial sector.
- The roadmap is based on four pillars, including climate risk management, data and reporting requirements, green finance tools and markets, and coordination and monitoring.
- The initiative aims to strengthen the financial sector's resilience to climate change impacts and support a transition to a more sustainable economy.
