ANZ signs an MoU with BPNG and GGGI on the Inclusive Green Finance Project
July 25, 2024
The Bank of Papua New Guinea (BPNG), Australia and New Zealand Banking Group (PNG) Ltd (ANZ) and the Global Green Growth Institute (GGGI) have signed a Memorandum of Understanding (MoU) to integrate and reinforce the Inclusive Green Finance Policy (IGFP) into ANZ’s operations and services.
The MoU establishes a framework for cooperation and collaboration between the parties to support Papua New Guinea’s IGFP. This collaboration leverages ANZ’s comparative advantages, ensuring complementarity and mutual reinforcement among all parties. Under the MoU, ANZ will pilot the inclusive green taxonomy through green loans.
ANZ is the fourth financial institution to join this initiative, following the Bank of South Pacific (BSP), Nationwide Micro Bank (MiBank), and Women’s Micro Bank Ltd (Mama Bank), who signed similar MoUs with GGGI and BPNG earlier this year.
Funded by the New Zealand Ministry of Foreign Affairs and Trade (NZ-MFAT) through the “Low-Emissions Climate Resilient Development” Program, the Green Finance Centre will provide policy advisory services, technical assistance, knowledge-sharing, and capacity-building activities to all four financial institutions. GGGI is providing all technical and administrative support to GFC who is guided by the IGFP Steering Committee chaired by BPNG.
As part of the MoU, GFC will conduct a needs assessment on ANZ to shape the development of green loan products aligned with the taxonomy. GFC and ANZ will also hold periodic consultations to review the planning, implementation, and outcomes of their cooperation, identifying opportunities for enhancing collaboration.
In anticipation of the Agence Française de Développement (AFD) funded program “Greening the Pacific Financial System” (GPFS), GFC will establish and capitalize the Green Refinancing Facility (GRF) with 1.8 million Euros in Papua New Guinea. Financial institutions aligned with the IGFP and the MoUs will qualify to access the GRF.
BPNG Governor Mrs. Elizabeth Genia expressed her excitement and gratitude at the MoU signing event, noting ANZ’s commitment to developing green products aligned with the Green Taxonomy. She also thanked GGGI for its guidance and support in coordinating with ANZ to implement the MoU.
ANZ CEO Mr. Lachlan Halstead remarked on his enthusiasm for signing the MoU and participating in this important initiative. He emphasized that such initiatives align with ANZ’s goal of developing social and sustainable loan products in the PNG market. Given PNG’s developing economy, these initiatives are essential, he added.
GGGI PNG and Solomon Islands Country Representative Mr. Sakiusa Tuisolia highlighted the significance of the MoU signing with ANZ, noting ANZ’s long-standing presence in PNG for over 100 years. Mr. Tuisolia stressed that despite international efforts to combat climate change in PNG, more support, funding, and resources from the domestic private sector are necessary. Financial institutions like ANZ play a critical role in this endeavor.
