Background
The European Investment Bank’s programme “Greening Financial Systems” under the International Climate Initiative (IKI) works with central and private banks to promote climate-related and environmentally sustainable investments, thereby supporting climate-resilient financial systems. Component 1 supports central banks and supervisory authorities in their commitment to a green agenda. With its expertise in climate-friendly financing, the EIB supports central banks in developing transition plans for the financial sector with specific elements such as taxonomies and risk mitigation instruments, enabling them to create regulatory frameworks financial market regulations and supervisory functions that ensure that the financial systems in their countries are better able to manage climate risks and promote green investments. Component 2 works directly with banks and financial institutions to develop green loan portfolios.
Tasks
The mid-term evaluation encompassed an in-depth qualitative assessment, using extensive semi-structured interviews with the management and staff of central banks, commercial and development banks, as well as program staff across several participating countries. The evaluation focused on three case study countries (Georgia, Kenya, Rwanda) and assessed the technical assistance operations based on criteria aligned with the OECD-DAC framework. The evaluation team reconstructed GFS country processes (from initial scoping with central banks through to work with financial institutions), mapping what services were offered, how scope was prioritized, and how activities differed by institution type. The team analyzed technical assistance packages in detail, covering design and use of tools (gap analyses, climate risk models, screening guidelines, green product ideation workshops, training of trainers formats, as well as coverage of sectors (energy, agriculture, transport, buildings, etc.). They assessed perceived usefulness, flexibility, and localization of the technical assistance, including whether GFS adapted to partners’ capacity levels, regulatory environments, and strategic priorities, and where partners saw unmet needs or scope limitations.
Key Messages
A key message of the evaluation is that the Greening Financial Systems Programme is well positioned to support the integration of climate-related financial risks into financial-sector governance and to advance the alignment of financial flows with the Paris Agreement. Its technical assistance has generated encouraging progress in building capacities, strengthening tools and informing policy dialogue, with emerging evidence of institutional uptake. The next phase should focus on consolidating these gains by deepening ownership, embedding approaches more firmly into institutional routines and policies, and strengthening the pathway from technical support to climate-aligned investment mobilisation.