EIB Global, the international arm of the European Investment Bank, signed technical assistance agreements with Zemen Bank, Dashen Bank and Hibret Bank on 9 September 2025, on the sidelines of the second Africa Climate Summit in Addis Ababa, to build their capacity to identify, assess and manage climate-related risks. The agreements, under EIB Global's Greening Financial Systems programme, follow a recent memorandum of understanding between EIB Global and the National Bank of Ethiopia under which the programme will help develop a national green taxonomy.
The National Bank of Ethiopia's newly announced Corporate Governance Directive includes several mandatory sustainability requirements.
BUILDING THE GREEN TAXONOMY
A taxonomy establishes a classification system that defines which economic activities qualify as environmentally sustainable, providing banks, investors, and regulators with a common language for green lending and investment decisions. Ethiopia does not yet have such a framework.
Alongside the taxonomy, the programme will invest in climate risk assessment capacity across participating Ethiopian banks. This involves training bank staff and supervisory personnel to identify, measure, and report on the climate-related risks embedded in loan portfolios.
FUNDING
EIB Global's involvement is funded by the German government through the International Climate Initiative (IKI).
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