The Bank of PNG Assistant Governor Mr. George Awap speaking during the workshop in Port Moresby, PNG

March 19, 2025

On March 19, 2025, the Financing Sustainable Development Through Capital Markets workshop, jointly organized by the Bank of Papua New Guinea (BPNG), the Securities Commission of Papua New Guinea (SCPNG), and the International Finance Corporation (IFC), took place to great success.

This significant event focused on how Papua New Guinea (PNG) can leverage thematic bonds to mobilize sustainable finance and drive economic growth in a climate-resilient, low-carbon future.

Participants of the workshop who are also key stakeholders and partners of the GFC.

While PNG is one of the lowest emitting countries globally, it remains highly vulnerable to climate change, ranking 160th out of 186 countries on the ND-GAIN Index for vulnerability and 165th for its readiness to address the climate crisis.

More than 80% of PNG’s population is employed in the informal sector, with women being particularly vulnerable to the climate risks that threaten their livelihoods and communities.

PNG’s proposed climate change mitigation and adaptation strategies aim to achieve carbon neutrality by 2050, but the country faces an urgent need for over USD 1 billion in investments to meet its enhanced Nationally Determined Contributions (NDC) targets by 2030. This makes the mobilization of long-term private sector capital more critical than ever.

Thematic bonds have emerged as a vital financial instrument to provide the long-term capital needed to build low-carbon, resource-efficient, climate-resilient, and inclusive infrastructure.

These bonds align with broader fiscal policy goals and can unlock the necessary funding for critical sectors such as agriculture, transportation, infrastructure, and health.

As of December 2024, a remarkable USD 5.7 trillion in green, social, sustainability, and sustainability-linked (GSS+) bonds has been issued globally, demonstrating the enormous potential of these instruments in driving sustainable development.

An ongoing session at the workshop.

The workshop was designed to disseminate the findings of the IFC’s Market Assessment Report on Thematic Bond Market Development in PNG.

This report offers key insights into the fundamentals, priority areas, and considerations for potential issuers in PNG’s thematic bond market.

Discussions during the event explored the challenges, opportunities, and reforms needed to create an environment conducive to sustainable finance in the country.

Throughout the workshop, participants gained a deeper understanding of the
considerations and steps involved in issuing or investing in thematic bonds. The feedback collected will help define priority actions for market development and guide the next steps for creating a sustainable financing ecosystem in PNG.

Additionally, the workshop helped identify specific technical assistance needs, with stakeholders discussing the necessary collaborations to support the implementation of these actions.

The workshop’s outcomes have set the stage for continued progress toward a sustainable and climate-resilient economy in PNG.

Collaboration between key stakeholders such as government agencies, including the Department of Treasury and the Climate Change and Development Authority, as well as private sector players, institutional investors, and development partners, will be crucial to achieving the country’s climate and development goals.

These efforts will help create an enabling environment for thematic bond market development, which is essential for driving sustainable finance in PNG.

As PNG continues its journey to meet its ambitious climate targets, thematic bonds will play a critical role in funding the key infrastructure projects required for the country’s low-carbon, resource-efficient, and inclusive economy. T

he successful workshop marked a significant milestone in PNG’s path to unlocking sustainable finance, with stakeholders reaffirming their commitment to working together to build a resilient, prosperous future for the nation.

The Financing Sustainable Development Through Capital Markets workshop has opened new avenues for PNG to tap into the potential of thematic bonds and sustainable finance. With the ongoing support of international partners and local stakeholders, PNG is well-positioned to meet its climate goals and secure the capital needed for sustainable development.

Moving forward, collaboration, innovation, and strategic investments in key sectors will be essential for building an economy that can withstand the impacts of climate change while ensuring growth that benefits all citizens for generations to come.