The Central Bank of the Republic of Kosovo has approved a 2025–2027 Strategic Roadmap for the management and supervision of climate- and environment-related risks in the financial sector, aimed at building a regulatory and supervisory framework that addresses these risks. The roadmap is aligned with Kosovo’s environmental commitments linked to potential European Union membership, the Sofia Declaration, and reforms under the International Monetary Fund’s Resilience and Sustainability Facility programme. Drawing on European and international practice, it sets supervisory and regulatory expectations for financial institutions to identify, assess, govern, measure, manage and control climate-related risks, covering banks, non-bank financial institutions and insurance companies. Development was supported by the World Bank’s Financial Sector Advisory Center (FinSAC) and is framed around regulatory, supervisory, financial stability and capacity-building actions. The central bank also pointed to earlier steps supporting its green agenda, including joining the Sustainable Banking and Finance Network, issuing a 3 April 2024 guide requiring banks to report credit exposures to companies facing transition costs linked to the Carbon Border Adjustment Mechanism, updating its investment policies to include sustainability-financing instruments, and expanding capacity through conferences, workshops and forums.

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