North Macedonia Advances Green Finance with EIB-Backed Greening Financial Systems Programme

North Macedonia is stepping up its efforts to align its financial sector with global climate and sustainability goals through the Greening Financial Systems (GFS) programme, launched in partnership with the European Investment Bank’s development arm, EIB Global, and the National Bank of the Republic of North Macedonia (NBRNM). The initiative, funded by the International Climate Initiative (IKI) on behalf of the German Federal Ministry of Economic Affairs and Climate Action (BMWK), is positioning the country’s financial institutions to better manage climate-related risks and accelerate the green transition.

Market Study Reveals Knowledge Gaps and Opportunities

As part of the programme, a comprehensive market study surveyed over 300 medium and large enterprises across key industries to assess sustainability practices, climate risk exposure and green finance uptake. The findings were mixed. While there is still a considerable lack of awareness about the green economy—only 7% of firms identified as experts, while 30% admitted to being entirely unfamiliar with the concept—there are also encouraging signs. More than a quarter of respondents viewed competitive advantage and revenue growth as key benefits of adopting greener practices, indicating that businesses see sustainability as an emerging driver of growth.

To close the knowledge gap, the survey insights, along with interviews and focus groups, are feeding directly into the design of a climate risk disclosure framework for banks, which is expected to be finalised later in 2025. This framework will bring North Macedonia’s banking sector closer to international best practices on transparency and risk management.

Tools and Training for Financial Regulators

A cornerstone of the GFS programme is capacity building for financial regulators. The initiative introduced the Climate Risk Navigator tool, which equips the central bank with the ability to assess climate-related risks systematically and guide commercial banks in adjusting their business models. Complementary training sessions have also been rolled out, ensuring that regulators and financial professionals are familiar with the practical steps needed to align with the Task Force on Climate-Related Financial Disclosures (TCFD) and other global standards.

EIB Global Representative to North Macedonia, Björn Gabriel, stressed the transformative role of the initiative:

“The GFS programme goes beyond technical assistance; it’s a strategic investment in North Macedonia’s financial resilience. By assessing market conditions and equipping regulators and banks with tailored tools to manage climate risks, it fosters innovation, investment and inclusive growth.”

Strengthening Financial Stability and Growth

Echoing this sentiment, the Governor of the National Bank of North Macedonia, Trajko Slaveski, highlighted the importance of integrating sustainability into the country’s financial system:

“Technical assistance through our cooperation with EIB Global plays a pivotal role in strengthening institutional capacity, fostering knowledge exchange and adopting best international practices. This support is instrumental in enabling an effective transition to a green economy and ensuring preparedness for the challenges that lie ahead.”

Governor Slaveski underscored that embedding climate and environmental risk considerations into strategic objectives enhances both resilience and long-term stability for North Macedonia’s financial system, contributing to sustainable economic growth.

Supporting Banks in the Transition

The GFS programme also provides tailored technical assistance to leading banks, including Komercijalna Banka, NLB Banka, ProCredit Bank and Sparkasse Bank. These institutions are being supported in integrating climate risk scenarios into their strategies and business planning. By doing so, they are better positioned to identify investment opportunities in green projects, particularly among small and medium enterprises, and to advise clients on adopting sustainable business models.

This hands-on support ensures that banks not only comply with regulatory requirements but also act as active enablers of North Macedonia’s green transition.

Looking Ahead

Launched in May 2024, the GFS programme represents a crucial step for North Macedonia as it works toward meeting its Nationally Determined Contribution (NDC) targets and aligning its economy with broader European Union green finance standards. The finalisation of the climate risk disclosure framework in 2025 will mark a significant milestone, establishing a strong foundation for sustainable growth and financial stability in the face of climate change.

By bridging knowledge gaps, strengthening institutional capacity, and equipping banks with practical tools, the GFS programme is positioning North Macedonia as a regional frontrunner in sustainable finance—demonstrating how climate resilience and financial innovation can go hand in hand.