Green Finance Centre and Bank of Papua New Guinea Collaborate on Sustainable Finance Roadmap
October 4, 2024
The Green Finance Centre (GFC) partnered with the Bank of Papua New Guinea (BPNG) for an in-depth capacity-building session on Papua New Guinea’s Sustainable Finance Roadmap. Held at BPNG’s ToRobert Haus in Port Moresby, the session aimed to advance understanding of sustainable finance and outlined the GFC’s strategic workplan for 2024-2025. This collaboration serves as a key step in aligning Papua New Guinea’s financial system with global green finance standards, ensuring the country’s transition towards a more sustainable and resilient economic future.
The session was a significant opportunity for BPNG’s Financial System Stability Group (FSSG) to engage in focused discussions with the GFC’s team, enhancing the central bank’s readiness to implement sustainable finance initiatives. Assistant Governor Mr. George Awap led the session, highlighting the importance of proactive engagement in the country’s journey toward sustainable finance. “Sustainable finance is not just a policy agenda; it is a necessity for resilient economic growth,” stated Mr. Awap. His remarks called for a unified effort across the financial sector to integrate sustainability, paving the way for a future-ready, inclusive financial system.
The session also emphasized the technical support provided by the Global Green Growth Institute (GGGI) and funding from the New Zealand Ministry of Foreign Affairs & Trade (NZ MFAT). These partnerships have already delivered a crucial diagnostic report outlining key gaps and opportunities in PNG’s financial landscape. Complementing the report, the development of an Inclusive Green Finance Policy aims to ensure the country’s financial system supports both environmental sustainability and social development.
Key topics discussed included sustainable lending practices, green loan reporting, and the integration of Environmental, Social, and Governance (ESG) criteria within the financial system. The dialogue centered on how BPNG could play an instrumental role in driving these efforts, particularly through the development of policy frameworks and regulatory oversight. Participants emphasized the importance of establishing clear reporting standards and accountability mechanisms to ensure financial institutions align with sustainable finance principles. This will help foster greater transparency and trust in the sector, encouraging sustainable investments that benefit both the economy and the environment.
This partnership between the GFC, BPNG, and its international collaborators represents a pivotal moment in PNG’s sustainable finance development. Through capacity building, diagnostic assessments, and targeted policy development, the initiative lays the groundwork for long-term economic and environmental resilience. The outcomes of this session will serve as a catalyst for transformative change, positioning Papua New Guinea as a regional leader in sustainable finance.
