The National Bank has developed the Roadmap for Sustainable Finance of Moldova for 2024-2028.
According to the National Bank of Moldova (NBM), sustainable development has become a fundamental part of the financial decision-making process. Global financial systems, driven by the need to fight climate change and to find inclusive and sustainable development paths, are being transformed to incorporate sustainability factors into market norms and standards that regulate and guide the financial system. The NBM emphasized that stakeholders in Moldova's financial system need a clear Roadmap for Sustainable Finance to succeed in an economy that may face climate change and significant environmental degradation. The transition to a low greenhouse gas economy, to a more circular economy, is accelerating globally and in Europe, which entails both risks and new opportunities for the economy and financial sector actors. The National Bank of Moldova recognizes that the successful development of the country's economy will be at risk if the sustainable development paradigm is not implemented in the country's finances. The financial system provides financing for the sustainable development of the economy; therefore it is necessary to clearly understand what kind of economic activity is sustainable. Moldova could rely on the EU taxonomy of sustainable economic activities. The NBM stated that it shares the concern of the main international financial organizations, according to which, in the 21st century, the environmental problems, including climatic ones, will represent a key source of risks for the financial sector entities. Therefore, it is important that the risk management system of financial sector entities in Moldova includes the management of environmental risks, especially climate risks, and related social risks. In managing these risks, financial sector entities should adhere to the principle of double materiality. That is, they should consider how their financing could affect people and the planet, as well as how sustainability issues could affect their financial position. Financial sector actors should introduce and offer new financial instruments for sustainable development, including green bonds and green loans. However, preventing environmental misinformation (greenwashing, green brand laundering) is extremely important and must be ensured. To respond to this need, the NBM has developed the Roadmap for Sustainable Finance of Moldova 2024-2028. It is intended to be a guiding document for the National Bank, financial sector entities and other stakeholders in developing and promoting sustainable finance in the country. The objective of the Roadmap is to create a clear strategic and systemic vision of the key elements leading to the development of sustainable finance in Moldova and the steps to be taken to realize them. In addition, it is intended to present the basic conditions for sustainable finance in the legal framework governing Moldova's financial system, as well as to prioritize and develop an action plan for the development and implementation of the country's sustainable finance policy. The roadmap aims to ensure the coherence of stakeholders' efforts, including greening of investments and public procurement, ensuring state support for small and medium-sized enterprises (SMEs) and farmers, as well as greening of the energy sector and efforts to improve energy efficiency in Moldova, in line with the regulatory framework for environmental protection, mitigation and adaptation to climate change. The Roadmap for Sustainable Financing of Moldova for 2024-2028 developed by the National Bank is available on the NBM website. // 07.06.2024 - InfoMarket.
