exposes the country to the risks of natural disasters and extreme weather events ( such as droughts, torrential rains, floods, and heat waves ), which, driven by climate change, may further intensify in the next period. an additional factor is the prevailing economic model, which includes high - energy intensity and reliance on climate - sensitive natural resources. the domestic economy has a high consumption of energy, which, measured per unit of product, is three times higher compared to the european average, although it is slightly lower compared to the average of the western balkan countries. electricity production is predominantly by fossil fuels ( about 74 % of total gross production in 2022 ) with the energy sector causing most of the country's greenhouse gas emissions. the share of renewable sources in the gross final consumption of energy in 2021 is 17. 3 %, while in the european union, it is 21. 8 % on average. such conditions point to the 2 / 3 bis - central bankers'speeches exposure of the country to the risk of transition in the restructuring of the economy towards the model of sustainable development. green transition is costly. according to some estimates, it will take from 3 to 5 trillion us dollars per year to finance the transition towards a sustainable economy5. therefore, the support of these endeavors by the banking systems is of key importance. our green finance statistics show rising financial support, but also a need to strive further. banks'green loans, more than doubled for the last four years, and their share in the overall portfolio increased to 4. 1 % in june this year. banks'green lending is mainly channeled to the corporates that comprise 93 % of total green loans extended. we need to acknowledge that these favorable developments are also a reflection of the support – both financial and technical - provided by international and european institutions and funds, which we deeply appreciate. one of the contributing institutions is certainly the green for growth fund6, which has been present in our country ever since its inception, investing more than eur 50 million so far, alongside 26 dedicated technical assistance projects for local financial institutions. our impression is that things are changing rapidly and that we need to act, promptly. undoubtedly, the transition towards a green and sustainable economy has been and will continue to be a challenging journey, especially for emerging economies that tend to have higher investment needs, but lower domestic savings. in this vein, successful arrival at the final destination of our journey will, to a great extent, depend on the support

turning our attention to russia, we observe a notable increase in the current account surplus, stemming from mixed factors, among which the effect of the surge in gas and oil prices is associated with an adverse volume effect [ slide 15 ]. sanctions further influenced this dynamic, as our export restrictions to russia translated into diminished imports, which had a positive impact on the current account. the increase in russia ’ s current account does not inherently denote an increase of russia's wealth ; comprehensive insights on this matter can be found in the insightful works of scholars such as oleg itskhoki and dmitry mukhin. so now, what ’ s next? let me share with you some thoughts on what we call the greening of global imbalances. [ slide 15 : war, russia in 2022 ] the greening of global imbalances to think about the evolution of current accounts in the coming years and decades, there are three groups of questions that need to be raised. the first relates to the reallocation of trade flows across industries, anticipating shifts away from fossil fuel exports, a potential decline in long - distance tourism, and possibly a decrease in services necessitating face - to - face interactions. meanwhile, trade of minerals, and of green and technological investment goods, are likely to expand. the reallocation of trade flows will have consequential impacts on trade imbalances [ slide 18 ]. for instance, the current account surplus from fossil fuel exporters is likely to diminish, with reduced deficit or increased surpluses for import - dependent nations. however, the final impact on imbalances is non - trivial given the multiplicity of trade reallocations. a comprehensive understanding requires general equilibrium models to capture the simultaneous evolution of interdependent quantity and price variables. [ slide 18 : changes in trade flows may be complex ] the second type of question delves into the reallocation of aggregate demands : will the reallocation of saving - investment imbalances triggered by the pandemic be long lasting? will private savings increase, or will savings return to pre - covid levels? will there be a shift towards increased investment but reduced consumption during the green transition? we do not know the answers to these fundamental questions yet. the third set of questions revolves around the relocation of saving and investment imbalances, both at the intra and international levels, depending on transition strategies. for instance, a nation's reliance on carbon pricing versus public investments