Climate pledge

Published: 3/11/2021
Climate pledge


Whereas the Croatian National Bank

  • is concerned about the impact of climate change and recognizes that Croatia, like most countries, will in decades to come, experience further gradual rise in average temperature and hazardous weather extremes that will affect its natural and physical capital as well as its socioeconomic system;
  • is aware of the urgent need for coordinated action by all private and public agents and institutions as well as international community, aimed at climate change adaptation and mitigation, and climate transition;
  • understands that Croatian credit institutions are exposed to climate-related and environmental physical and transition risks which should be adequately identified, analysed and managed;
  • considers that the financial sector will have to play crucial role in financing substantial investment in sustainable infrastructure and technologies needed for creating a sustainable and climate-resilient economy;

the Croatian National Bank

  • as the aspiring euro area member already participating in the single supervisory mechanism (SSM) (through close cooperation) and the sigle resolution mechanism (SRM), closely follows and endorses endeavours of the European Central Bank (ECB) and its commitment to incorporate climate-related and environmental concerns in all areas of its responsibility; and
  • realizes the importance of its participation in international associations, initiatives, working groups and fora addressing interlinkages between climate change and economic and financial systems,  such as Network of Central Banks and Supervisors for Greening the Financial System (NGFS), and those related to e.g. SSM, ECB, European Systemic Risk Board (ESRB) or Bank for International Settlements (BIS), in order to exchange experience, learn from others and build relevant practices by joining forces.

Given its mandate, instruments and resources, the Croatian National Bank is determined to strengthen its catalytic role in fostering climate transition in Croatia.

In that respect, the goals of the Croatian National Bank include:

  • building and enhancing its staff's skills and knowledge on the impact of climate change on the Croatian National Bank's main goals;
  • developing and subsequently implementing its own climate strategy and allocating adequate resources to address climate-related and environmental risks in different policy areas, especially in the area of financial stability, supervision, research, monetary operations and foreign reserves management;
  • incorporating climate-related and environmental risks into supervisory expectations in line with the ECB's Guide on climate-related and environmental risks;
  • engaging in regular open dialogue with credit institutions in order to encourage them to incorporate climate-related and environmental risks into their risk management frameworks and decision-making processes;
  • supporting the establishment of a work stream within the Vienna Initiative charged with exploring the way it can assist credit institutions in adapting to climate transition and transforming economies in line with the European climate goals;
  • formulating an action plan by the end of 2022, aimed at reducing its own carbon footprint in line with the Paris Agreement objective of limiting global warming to 1.5 degrees Celsius.