The Bank of Namibia (BoN) is developing a sustainability framework to institutionalise sustainable finance within the financial industry and establish a specialised body dedicated to promoting sustainability within the financial system.
BoN Governor Johannes !Gawaxab emphasised the central bank’s role in managing climate and nature-related financial risks and promoting the growth of sustainable finance and investment in emerging renewable sectors, particularly hydrogen.
“This year, the Bank of Namibia took a significant first step by developing a sustainability framework, which outlines the Bank’s vision to institutionalise sustainable finance within the financial industry and establish a dedicated industry body to champion sustainability within the Namibian financial system,” he said.
He said in the face of this development, it is clear that addressing climate change and the associated micro-economic risk requires a comprehensive and coordinated approach involving the central bank, other regulators, and the broader financial sector.
!Gawaxab delivered these remarks during an address at the Global African Green Hydrogen Summit, highlighting the urgent need for central banks to play an active role in combating climate change and supporting the transition to a sustainable, low-carbon economy.
He underscored Namibia’s bold ambitions to become a leader in green hydrogen production, positioning the country at the forefront of the global energy transition.
“Central banks, traditionally focused on maintaining price stability and safeguarding financial systems, now face the critical responsibility of addressing the economic and financial risks posed by climate change,” he said.
He further highlighted that developing countries, including Namibia, are disproportionately affected by the physical impacts of climate change.
“Recent studies indicate that low- and lower-middle-income countries could face GDP losses of up to 10% and 7.3%, respectively, by 2030 due to climate-related disruptions,” he said.
Governor !Gawaxab emphasised that Namibia’s commitment to becoming a leader in green hydrogen production represents a significant opportunity for the country to lead in the emerging green economy.
He acknowledged the challenges associated with this ambition but expressed confidence in Namibia’s ability to rise to the occasion.
“Namibia must navigate two critical transitions that ensure a just energy transition and managing expectations over the next 5 to 10 years as the country awaits revenues from oil, gas, and renewables, including green hydrogen, to materialise. He emphasised that this cautious approach will be essential to securing long-term prosperity while transitioning to a green economy,” he said.
!Gawaxab invited institutional investors and international stakeholders to join Namibia on its journey toward a green economy.
He highlighted Namibia’s commitment to creating a regulatory environment that supports the country’s hydrogen potential, including the introduction of the Synthetic Fuels Act to establish standards that conform to international guidelines.
“Namibia’s journey toward a green economy is not just a policy decision; it is a call to action. Together, we can harness the power of innovation and investment to create a greener, more prosperous Namibia. The world is watching, and the time to act is now,” he said.
