NZ Ministerial Delegation Visits Bank of PNG to Discuss Progress
May 14, 2024
The Bank of Papua New Guinea (BPNG) hosted a high-level ministerial delegation from the New Zealand government for a critical round table discussion. The meeting focused on the intersection of green finance and climate change resilience in Papua New Guinea. These discussions highlighted the central role of the Green Finance Centre (GFC), facilitating an exchange of insights on enhancing climate resilience and green growth through financial strategies among officials from the New Zealand Ministerial Delegation, BPNG, the Climate Change Development Authority (CCDA), and the Global Green Growth Institute (GGGI). The New Zealand Ministerial Delegation is in Papua New Guinea for bilateral talks with PNG Government.
The New Zealand Ministerial delegation included the Minister of Climate Change, Hon. Simon Watts MP; Minister for Health & Pacific People, Hon. Dr. Shane Reti MP; and New Zealand Deputy High Commissioner, H.E. Charlie Gillard. Representing Papua New Guinea were Deputy Governor Mr. Jeffrey Yabom (standing in for BPNG Governor Mrs. Elizabeth Genia, who is currently traveling on official business), Assistant Governor Mr. George Awap, Acting MD of CCDA Ms. Debra Sungi, and the GGGI Country Representative to PNG and Solomon Islands, Mr. Sakuisa Tuisolia.
Papua New Guinea, an island nation, faces heightened vulnerability to climate calamities including floods, droughts, rising sea levels, and strong winds. These conditions, already evident across the country’s four regions, are anticipated to worsen, posing significant risks to the financial ecosystem due to increased frequency and severity of extreme weather events and shifting market dynamics.
Mrs. Elizabeth Genia, Governor of the BPNG, conveyed through Deputy Governor Mr. Jeffrey Yabom, a message to the Ministerial delegation emphasizing BPNG’s mission to serve the people of Papua New Guinea. This mission involves implementing effective monetary policy and maintaining a sound and inclusive financial system. She highlighted that climate-related events and policy changes pose systemic implications for financial markets, potentially causing market disruptions, liquidity problems, and increased volatility. In response, the Bank of Papua New Guinea is dedicated to playing a pivotal role in safeguarding market stability by proactively addressing climate-related risks and strengthening resilience.
New Zealand, in partnership with GGGI and the Centre for Excellence in Financial Inclusion, has funded development of the Inclusive Green Finance Policy (IGFP) and supported establishment of the GFC. The primary goal of this initiative is to develop and integrate green loan products into the lending operations of financial institutions. The Green Finance Centre is responsible for promoting and implementing these, supporting lending institutions to access, use and promote these green loan products. The GFC is also mandated oversee other green finance initiatives in the country aimed at mitigating climate-related risks, promoting green finance, and catalyzing investments towards a more sustainable future.
New Zealand delegation commended the Bank of Papua New Guinea for its leadership in establishing the foundational structures for Green Finance in PNG, noting that it is an achievement the Central Bank can be proud of.
During the round table discussion, BPNG Assistant Governor Mr. George Awap, who also serves as Chairperson of the Steering Committee for the Green Finance Centre, thanked the New Zealand Government for its regional leadership on climate change. Mr. Awap highlighted the critical role of the Green Finance Centre in fostering a sustainable financial ecosystem in PNG.
Mr. Mohinesh Prasad, Head of the Green Finance Centre, updated the delegation on the significant progress the GFC has made and its forthcoming initiatives and workplan aimed at greening PNG’s financial system. Through leadership, guidance, and support, the Centre will mitigate climate-related risks, promote green finance, and catalyze investments toward a more sustainable future for PNG.
