GUIDELINES ON MANAGING CLIMATE-RELATED RISKS. National bank of Republic of North Macedonia

The National Bank of the Republic of North Macedonia (NBRNM) has integrated climate risk considerations into its Guidelines on managing climate-related risks, emphasizing financial stability in the face of climate change. The Guidelines provide the main elements of the management of these risks, enabling timely identification and taking of appropriate activities for reduction or mitigation of the negative influence, including establishment of an adequate organizational layout of the risk management which requires strengthening of the banks’ capacities and improvement of their system. The development of these guidelines is part of the National Bank activities for an appropriate contribution to the creation of a green economy, which is a strategic objective of the National Bank.

The document highlights:

• Climate-related financial risks: Addressing both physical (e.g., extreme weather, flooding, asset damage) and transition risks (e.g., regulatory changes, shifts in investment behavior).
• Green and sustainable economy: Supporting the shift towards low-carbon finance, green investment portfolios, and regulatory frameworks to foster economic resilience.
• Climate stress testing and resilience: Implementing climate risk assessment methodologies in the banking sector to ensure financial stability amid environmental changes.
• Collaboration and policy integration: Strengthening cooperation with national and international financial institutions for climate adaptation and sustainable economic policies.

The Guidelines promotes financial resilience to climate risks, supporting green finance, and fostering adaptive strategies within the banking sector to mitigate climate-related economic vulnerabilities.