“Central banks can and must contribute to the greening of the economy that we all need as humans to survive. Ecological sustainability is therefore one of the strategic directions of the Bank of Lithuania. We aim to make both the central bank itself and the Lithuanian financial sector greener,” says Gediminas Šimkus, Chair of the Board of the Bank of Lithuania.
The Climate Change Centre will work with other units of the Bank of Lithuania to assess and ensure the resilience of the financial sector to climate change risks. These risks include potential physical damages and costs of the green transition. Only a financial sector that is safe and adequately prepared for climate change will be able to meet the growing financing needs for climate-related green investments. The centre will also aim to enhance ecological sustainability across other areas of activity of the Bank of Lithuania, including the day-to-day functioning of the organisation.
“Climate change and related challenges will transform the world, which also means changes in the areas of responsibility entrusted to the Bank of Lithuania, i.e. monetary policy, macroeconomic and financial stability assessments, supervision and regulation of the financial sector, and foreign reserves management. The Climate Change Centre will coordinate and strengthen the work on ecological sustainability of the Bank of Lithuania, both internally and with external strategic partners,” says Tomas Garbaravičius, Head of the newly-established centre.
The Climate Change Centre of the Bank of Lithuania will pursue its objectives in close cooperation with financial market participants, their associations, Lithuanian governmental and non-governmental sectors, and international institutions. The Green Finance Institute, whose establishment is foreseen in the recommendations on the Lithuanian Action Plan on Sustainable Finance initiated by the Ministry of Finance, would also become an important strategic partner.
According to Garbaravičius, the priorities and first actions of the new centre will be announced in the coming weeks together with the Bank of Lithuania’s Green strategy for 2023-2025.
Tomas Garbaravičius, the Head of the Climate Change Centre of the Bank of Lithuania, holds a PhD in Economics and is a Chartered financial analyst (CFA). Tomas is a former member of the Board of the Bank of Lithuania, responsible for financial stability, macroprudential policy, bank resolution and foreign reserves management. Prior to his return to Lithuania, for almost a decade Garbaravičius worked on financial stability, financial markets and asset management issues at the European Central Bank.
