North Macedonia Defines Green Investment and Unlocks Finance With EIB Support

The framework will reflect North Macedonia’s economic structure and national priorities, giving investors, businesses and public institutions a consistent reference for assessing sustainable activities.

For businesses planning cleaner operations and banks deciding which projects to finance, knowing what qualifies as a green investment can make decisions clearer. North Macedonia is beginning work on a national green taxonomy, a shared classification system that will define environmentally sustainable economic activities and help direct funding towards them. The National Bank is initiating the process with relevant ministries and institutions under the European Investment Bank's Greening Financial Systems Programme.

Making Green Investment Easier to Identify

The framework will reflect North Macedonia's economic structure and national priorities, giving investors, businesses and public institutions a consistent reference for assessing sustainable activities. Its development is expected to support better investment planning, help mobilise capital for sustainable projects and strengthen the country's alignment with European Union standards. For those making financing decisions, a common definition can reduce uncertainty about which activities support the transition to a greener economy.

National Bank Governor Trajko Slaveski said the taxonomy would help investors, companies, banks and economic policymakers identify green activities and channel financial resources towards a low-carbon economy. He highlighted its role in improving transparency and making climate-related data easier to report, giving institutions a clearer basis for explaining how their decisions contribute to environmental goals.

Building Trust and Tackling Greenwashing

A central purpose of the initiative is to help prevent greenwashing, where environmental claims make an activity or financial product appear more sustainable than it really is. Clear classifications can provide a stronger basis for assessing those claims and support the development of green financial instruments. Environmental considerations are also expected to become more firmly integrated into lending, risk management and everyday business decisions, connecting sustainability assessments with the choices that determine where money goes.

Björn Gabriel, the EIB's head of representation to North Macedonia, described the taxonomy as a common language for policymakers, banks, businesses and investors. Greater consistency in identifying and financing green activities is expected to attract investment and encourage new financial products, helping companies reduce emissions from industrial operations and adapt to the effects of climate change. The framework's value will come from giving these different groups a shared understanding of the activities they are supporting.

Building on Existing Climate Finance Support

The technical assistance extends an existing partnership between the EIB and the National Bank through the Greening Financial Systems Programme. That cooperation has already delivered targeted training and introduced the Climate Risk Navigator tool, which enables the central bank to assess climate-related risks and guide financial institutions towards alignment with global standards. Developing the taxonomy adds a national classification framework to this work, linking a clearer understanding of environmental activities with stronger financial decision-making.

Germany and Luxembourg finance the programme through the Greening Financial Systems Fund, a multi-donor fund established by EIB Global to help build financial systems capable of withstanding climate-related challenges around the world. Implementation takes place in close coordination with the NDC Partnership. North Macedonia's initiative is at the development stage, with the focus now on establishing a framework that serves domestic priorities and supports closer alignment with EU standards.