Tunisia declares need for green monetary policy to move towards more environmentally sustainable economy

Senior Advisor to the Arab Planning Institute, Moez Labidi, stated that the threats of climate change have not yet been given the place they deserve on the political agenda of central banks in the Arab region. This is reported by Tunis Afrique Presse (TAP), a partner of TV BRICS.

The analyst claims that several central banks have become aware of the financial risks connected to climate change in recent years. This trend's shift can be attributed to two things.

On the one hand, greening the current financial system is a prerequisite for achieving financial stability.

On the other hand, achieving pricing stability continues to be challenging.

The source claims that the battle against climate change drives up the price of fossil fuels, particularly when green technology can't keep up with the world's increasing demand for environmentally friendly products and renewable energy sources.

Experts are certain that structural changes must continue to be implemented in order to increase finance options for environmental transformations and to increase budgetary chances.

The Arab region's local bond market development may have a big impact on encouraging the issuance of green bonds and advancing the greening of monetary policy.

Photo: iStock