The Centre for Excellence in Financial Inclusion (CEFI) is partnering with key stakeholders and government agencies to drive the plan for Green Finance in Papua New Guinea (PNG).
Last week the Inclusive Green Finance Policy (IGFP) Project Technical Working Group (TWG) held its first meeting in Port Moresby to discuss project methodologies, risks, partnership opportunities and offer advice that would facilitate overall delivery of the project.
The objective of the meeting is for its members to understand the context, goals and work plan of the IGFP project, review the draft green taxonomy and review the proposed activities for 2022-2024.
TWG members comprise government ministries, departments, financial institutions, community representatives and private sector entities.
The Global Green Growth Institute (GGGI) serves as the Secretariat for the project with support from Agriculture and Finance Consultants (AFC).
Committee Chair and Assistant Deputy Governor, Financial Systems Stability Group (FSSG), Bank of PNG George Awap, told the committee to embrace the concept of green finance and have regular consultations with all stakeholders to complete the process in the next few months.
In September 2020, CEFI requested the GGGI to support in developing an inclusive Green Finance Policy for PNG’s financial sector.
The policy aims to increase and facilitate flow of national and international funds and investments in a systematic manner towards businesses, projects and initiatives that would further the PNG government’s goals in, growth or green and sustainable industries, financial inclusion and climate change adaptation and mitigation.
CEFI Executive Director, Saliya Ranasinghe, when addressing the TWG stressed on the importance of green finance policy and how PNG can tap into green finance with the assistance of financial institutions.
“Green finance has been a subject for a long period of time and there have been quite a lot of international commitments for green finance, and there is a need to develop a green finance policy (for PNG).
“This will also add credibility to the country to attract funds. When the financial institutions are regulated by the Bank of PNG, having adopted this green finance policy will definitely attract more funds in the future for PNG,” said Mr Ranasinghe.
GGGI Deputy Country Representative, Peniamina Leavai, when sharing the same sentiments, said the green finance policy is a new ground and that the world is watching PNG and how the country will venture into this new ground of green finance.
“The green bond market could be worth 2.3 trillion dollars by 2023, it is regarded as meeting the needs of the environment and at the same time our economic growth simultaneously. The question in PNG is how we can make this work for our people,” Mr Leavai added.
A key feature of the policy is an inclusive and green taxonomy, which helps to identify essential technologies or activities that would contribute to the achievement of Papua New Guinean’s environment and social goals.
