Uganda needs an estimated $28.1 billion (about Shs 118.22 trillion) in climate-action financing by 2030 as Bank of Uganda (BoU) partners with the European Investment Bank (EIB) to strengthen the financial sector’s capacity to manage climate risks and attract investment.
The two institutions signed a cooperation agreement on Wednesday under which EIB Global, the EIB Group’s international development arm, will provide technical assistance to the central bank to develop a roadmap for greening the financial sector, improve climate-risk disclosure and strengthen reporting by supervised financial institutions.
The partnership is intended to safeguard financial stability while helping mobilise private and international capital to finance Uganda’s climate priorities.
BoU deputy governor Prof. Augustus Nuwagaba said the country must strengthen its resilience to climate-related risks without unnecessarily restricting access to finance.
“We must strengthen resilience without unnecessarily constraining access to finance,” Nuwagaba said.
“Our objective is a financial system that understands emerging risks, allocates capital effectively and continues to finance productive activity. Achieving this will require collaboration across sectors, technical expertise, reliable information and sustained implementation.”
The initiative comes as Uganda faces growing climate-related risks, particularly because of its heavy reliance on agriculture, while seeking substantial financing to meet its climate commitments.
Under the agreement, EIB Advisory will also support the practical application of Uganda’s National Green Taxonomy, launched in September 2025. The framework establishes a common, science-based definition of environmentally sustainable economic activities across sectors including agriculture, energy, transport, construction, water and sanitation, waste management and forestry.
The assistance will strengthen the central bank’s supervisory capacity to assess climate-related financial risks and help banks and other financial institutions meet emerging regulatory requirements.
Uganda has already issued Guidelines for the Management of Climate-related Financial Risks, which took effect at the end of 2025.
EIB vice-president Marko Primorac said financial institutions that understand climate risks are better positioned to protect economic stability and direct investment towards resilient, low-carbon growth.
“A financial system that understands climate risk is better equipped to protect economic stability and direct investment towards resilient, low-carbon growth,” Primorac said.
He said the partnership would translate climate ambitions into practical tools and strengthen market confidence, helping Uganda mobilise private capital for its climate-action agenda.
The technical assistance will extend beyond the central bank to selected commercial lenders, supporting improvements in climate-risk management, disclosure practices and green-lending policies.
Housing Finance Bank has been identified as the first Ugandan commercial bank to receive assistance under the partnership.
Pablo Vieira, Global Director of the NDC Partnership, said mobilising climate finance at the required scale depends on strong institutions and financial systems capable of managing climate-related risks.
“Strengthening how financial institutions understand and manage climate risks is essential to building a financial system that can mobilize investment at the scale Uganda’s climate and development priorities demand,” Vieira said.
The programme is being delivered through EIB Global’s Greening Financial Systems Technical Assistance programme, managed by EIB Advisory and financed by the governments of Germany and Luxembourg through the Greening Financial Systems Fund.
It is being implemented in coordination with the NDC Partnership, a global coalition of more than 270 countries and institutions working to advance the Paris Agreement.
Uganda joins Albania, Armenia, Bosnia and Herzegovina, Ethiopia, Georgia, Jordan, Kenya, Nigeria, North Macedonia, Rwanda and Vietnam among the programme’s beneficiaries.
The initiative aligns with Uganda’s National Climate Finance Strategy 2025–2030, which seeks to make the financial system more resilient and transparent while improving its attractiveness to foreign direct investment.
It also supports Uganda’s updated Nationally Determined Contribution under the Paris Agreement.
European Union Ambassador to Uganda Jan Sadek said the bloc’s climate commitments were ultimately about protecting people, their livelihoods and future generations.
“Ensuring that the financial sector can channel resources towards sustainable, climate-friendly solutions is essential to turning this ambition into real change in people’s lives,” Sadek said.
“The operation signed today is an important step in that direction.”
The cooperation also forms part of the European Union’s support for Uganda’s green transition under the Global Gateway strategy, which combines technical assistance, grants, loans and guarantees to improve investment conditions and mobilise public and private capital for sustainable infrastructure and climate action.
The European Investment Bank Group is the financing arm of the European Union and one of the world’s largest multilateral development banks. In 2025, it signed €100 billion in new financing and advisory services.
EIB Global focuses on international partnerships and development finance and is a key partner in Team Europe and the Global Gateway strategy.