The Inclusive Green Finance Policy was officially launched this week at the Hilton Hotel in Port Moresby by Prime Minister James Marape and was witnessed by the Bank of PNG Acting Governor Elizabeth Genia and the assistant governor George Awap and other important dignitaries.
The Policy launched marks a significant milestone for Papua New Guinea, demonstrating its commitment to building a sustainable and environmentally friendly economy and fulfilling the international commitments to the Alliance for Financial Inclusion under the El Sheikh Accord. Through collective efforts, the government and financial institutions aim to steer the country towards a low-carbon, inclusive green growth pathway and address the challenges posed by climate change.
In his address, Prime Minister James Marape encouraged government departments, state-owned enterprises, financial institutions, and MSMEs to collaborate and utilize this policy as a foundation for building a green business economy.
“Today, we celebrate the establishment of the Green Finance Policy by the Bank of PNG, which I believe is the first of many steps toward transitioning Papua New Guinea from a high-carbon economy to a sustainable and blue economy,” the PM said.
He emphasized on the policy’s importance in addressing climate change and how it will benefit the people of Papua New Guinea. He also stressed on the need to develop the country’s economy in a smarter and climate-resilient manner, fostering low-carbon, and inclusive green growth.
“While we are currently on a high-carbon development trajectory, which has proven beneficial for our economy and supporting our rapidly growing population, we must acknowledge that the detrimental effects of climate change are accelerating. This necessitates a shorter timeframe for us to enjoy the benefits of our current pathway.”
“The Inclusive Green Finance Policy serves as a reminder for all of us to conduct our business in an environmentally conscious manner. By offsetting our global and PNG carbon footprints and participating in the conservation of PNG’s tropical rainforest and mangroves, we can mitigate the impacts of climate change.”
The Prime Minister expressed gratitude to the Bank of Papua New Guinea, the Global Green Growth Institution (GGGI), the New Zealand Highland Commission, financial institutions, and other technical and development partners for their collaboration in designing and developing the Inclusive Green Finance Policy.
The Acting Governor of the Bank of Papua New Guinea Elizabeth Genia, underscored the significance of embracing green finance and adopting a proactive approach to address environmental risks and invest in projects that promote long-term sustainability.
“To support financial institutions in this important journey, the Bank of PNG, in collaboration with its partners, will establish a Green Finance Center at the CEFI office. The center will provide necessary support, including staff training, technical assistance, and the design of innovative green lending products,” Genia said.
The Assistant Governor of the Financial System Stability Group at the Bank of PNG and Chairman of the Inclusive Green Finance Steering Committee George Awap, highlighted the policy’s development and the discussions surrounding the impact of climate change on economics. He said Inclusive Green Finance is a new concept in the region which is requiring extensive collaboration between the Bank of PNG, domestic financial institutions, various ministries, and stakeholders.