The Bank of Namibia (BoN) has launched a national diagnostic study to assess the availability, quality, consistency and accessibility of climate-related data as it seeks to strengthen climate risk management and accelerate the country’s sustainable finance agenda.
The announcement was made by Bank of Namibia Deputy Governor and Namibia Sustainable Finance Alliance (NSFA) Chairperson Leonie Dunn during the Alliance’s first Sustainable Finance Workshop, held on 20 July under the theme, “Where the System Is Breaking Down: Gaps and Constraints.”
Dunn said the study will identify gaps in Namibia’s climate-related data landscape while improving the financial sector’s understanding of climate risks across different geographic regions and economic sectors.
She said the initiative will provide financial institutions with a stronger foundation to identify, assess, measure, manage and disclose climate-related risks in a more consistent and transparent manner.
“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,” Dunn said.
The diagnostic study forms part of the central bank’s broader efforts to strengthen Namibia’s sustainable finance framework and improve the financial sector’s preparedness for the economic impacts of climate change.
The workshop, organised by the NSFA in collaboration with the Bank of Namibia and RMB Namibia, brought together representatives from banks, non-bank financial institutions, development finance institutions and development partners to identify barriers to mobilising climate and biodiversity finance.
Participants identified fragmented and inadequate climate data, limited technical capacity, uncertainty over sustainable finance classifications, weak project preparation pipelines and insufficient coordination among stakeholders as key constraints to expanding sustainable finance in Namibia.
Despite these challenges, the workshop noted that Namibia remains well positioned to attract greater climate investment, supported by its abundant natural resources, relatively sophisticated financial sector and access to international climate finance mechanisms.
Participants also identified blended finance, adaptation finance, climate risk insurance, carbon finance linked to rangeland restoration and green industries, as well as conservation finance instruments such as payments for ecosystem services and biodiversity credits, as key opportunities to unlock sustainable investment.
