Balancing Commitment and Flexibility in Europe's Green Transition

At a pivotal moment for environmental policy, the Governor of the National Bank of Serbia emphasized the urgent need for both unwavering commitment and strategic flexibility in Europe's efforts to address climate change and nature preservation.

The Governor highlighted that while significant progress has been made since the landmark Paris Agreement, the pace of climate action remains insufficient, underscoring the need to balance ambition with practical, achievable goals. Drawing attention to ongoing proposals for changes to European climate regulations, she argued that targets must reflect real-world circumstances to ensure tangible progress, rather than remaining idealistic figures that are later revised or abandoned. Institutional independence was cited as crucial to protect climate priorities from being sidelined by opposing interests, particularly those resistant to the costs of green transition.

Active participation from all stakeholders—governments, businesses, and households—was described as essential for meaningful change. Businesses, in particular, were encouraged to adopt a longer-term perspective when investing in environmentally friendly projects, recognizing medium- and long-term profitability beyond initial outlays. The Governor also stressed the importance of clear, accessible communication from central banks about the broader economic impacts of climate risks, advocating for greater transparency and public engagement using the latest scenario analyses that highlight climate change's effects on jobs, prices, and overall economic stability.

Looking ahead, she pointed to the formation of a European regional group within the Network for Greening the Financial System as a valuable platform for sharing best practices and preparing EU candidate countries for future climate policy implementation. The speech concluded with a call for unified, realistic, and sustainable frameworks—prioritizing coordinated, inclusive actions over complex, isolated measures—as Europe continues to lead the global transition to a greener economy.

This intervention underscores the critical role of collaboration, pragmatic planning, and transparent communication in ensuring a successful, equitable, and lasting response to the challenges of climate change.