Windhoek: The Bank of Namibia (BoN) is undertaking a national diagnostic study to assess the availability, quality, and accessibility of climate-related data as part of efforts to strengthen sustainable finance and improve the management of climate-related financial risks. The bank announced the initiative in a media statement following the Namibia Sustainable Finance Alliance's (NSFA) first Sustainable Finance Workshop, held in Windhoek on Monday.
According to Namibia Press Agency, BoN Deputy Governor and NSFA Chairperson Leonie Dunn said sustainable finance requires more than the availability of capital. 'We have learned from the experience of other economies that our immediate priorities should include improving the measurement and disclosure of climate-related risks, as well as developing a common classification system in the form of a national taxonomy,' she said.
Dunn highlighted that the climate-data diagnostic study will identify gaps in climate-related information and strengthen the financial sector's understanding of where climate risks are concentrated across geographical areas and economic sectors, as well as how these risks may evolve over time. She noted that the study is expected to provide a stronger foundation for financial institutions to identify, assess, manage, measure, and disclose climate-related risks with greater consistency, quality, and comparability.
The workshop focused on climate finance, including financing for climate change mitigation and adaptation, as well as biodiversity finance. Participants assessed existing initiatives, identified barriers to sustainable finance, and explored opportunities for collaboration. The discussions follow a curtain-raiser meeting held in March, which identified fragmented climate data, limited technical capacity, uncertainty over classification systems, weaknesses in project development, and inadequate coordination as key obstacles to sustainable finance.
Environmental, Social and Climate Risk Manager at RMB Namibia, Brenton David, emphasized Namibia's financial sector's important role in developing investment-ready climate projects and mobilising both public and private capital for climate mitigation and adaptation. 'Participants also identified opportunities including blended finance to reduce investment risk, adaptation finance, climate-risk insurance, carbon finance linked to rangeland restoration and conservation finance instruments such as biodiversity credits and payments for ecosystem services,' the statement read.
The NSFA, a voluntary platform comprising 16 regulators, financial institutions, industry associations, and government agencies, stated it will continue coordinating efforts to mainstream sustainable finance and support Namibia's climate resilience and economic development objectives.