By Rosemary Kamanga
The United Nations Development Programme -UNDP- in partnership with the Ministry of Green Economy and Environment, has launched a study on nature-related financial risks in Zambia.
The study, which was done with support from the British High Commission Climate and Environment, provides an assessment of Zambia’s financial sector exposure to nature-related risks.
Ministry of Green Economy and Environment, Permanent Secretary DOUTY CHIBAMBA, notes that Zambia’s economy is heavily reliant on natural capital, with forests, water resources, wetlands, and wildlife underpinning critical sectors such as agriculture, tourism, and energy.
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Dr CHIBAMBA was speaking during the launch of the study on Nature-Related Financial Risks in Zambia workshop in Lusaka today.
Meanwhile, UNDP Resident Coordinator, JAMES WAKIAGA said the report positions Zambia among the first in Africa to take a systemic, data-driven look at how the financial sector depends on and is exposed to risks linked to loss of biodiversity and ecosystem degradation.
He added that the modeling work done by Genesis Analytics has produced critical insights into how shocks to natural systems lead to financial risk, asset devaluation, and economic disruption.
Dr WAJAIGA said this in a speech read on his behalf by UNDP Economics Advisor OJIJO ODHIAMBO.
And, British High Commission Climate and Environment Lead NIKOLAUS CLEMENZ, said the launch of the study on Nature-Related Financial Risks in Zambia marks a significant milestone in Zambia’s journey towards integrating nature into its financial systems.
Mr. CLEMENZ said that the study provides Zambia’s financial sector with tools and recommendations to understand and mitigate environmental degradation risks.
He further said there is a need to shift financial flows towards nature-positive outcomes and ensure financial resilience.
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