July 24, 2024

The Green Finance Centre (GFC) under the Inclusive Green Finance Project (IGFP) hosted its first Technical Working Group (TWG) Meeting of the year at the Hilton Hotel, Port Moresby. Since the IGFP’s inception in 2021, this was the fourth TWG meeting. The meeting saw participation from representatives across key sectors, including government departments, financial institutions, bilateral and multilateral partners, civil society organizations, non-governmental organizations, and private sector entities.

During the meeting, the GFC provided updates on its activities, progress, and the remaining year’s work plan. The GFC was established in March 2024 to create the institutional, policy and regulatory framework for a green, sustainable and inclusive financial sector in PNG.  The TWG members in their deliberations identified 5 priority sectors for the GFC to focus on under the Green Taxonomy which is a new classification system for tracking the lending in the banking and financial sector in PNG towards green and sustainable activities that support the government’s climate mitigation and adaptation objective to address the adverse impacts of climate change in the country. 

The TWG plays a crucial role in IGFP governance, facilitating key stakeholder engagements and consultations. Discussions and decisions from the TWG are presented to the IGFP Steering Committee for approval and endorsement.

The TWG has previously contributed to developing the Inclusive and Green Finance Policy (IGF Policy), which features Papua New Guinea’s Inclusive and Green Taxonomy and the IGFP’s Implementation Roadmap. The GFC has now assumed responsibility for implementing the policy, further updating the Green Taxonomy, and executing the roadmap.

Currently, the IGFP is in Phase 2, focusing on enhancing financial institutions’ readiness to apply the taxonomy to their lending operations and developing green loan products aligned with the Green Taxonomy. This work is supported by ongoing funding from the New Zealand Government through the New Zealand Ministry of Foreign Affairs and Trade (NZ-MFAT).

In Phase 3, with support from the Agence Française de Développement (AFD), the GFC will develop a Green Refinancing Facility (GRF) to incentivize and scale up green loan volumes initiated in Phase 2.

The TWG members discussed the progress, risks, partnerships, and opportunities of IGFP’s Phase 2 and Phase 3, offering necessary advice on preparing for green loan activities.

Bank of Papua New Guinea’s Assistant Governor and Chairperson of the IGFP Steering Committee, Mr. George Awap, welcomed the TWG members and emphasized the importance of the Green

Finance initiatives. He reiterated the need for collaboration and participation from all sectors to create an inclusive, sustainable, and climate-resilient financial sector in Papua New Guinea.

A key feature of the program was a panel discussion on the topic “Importance of Collaborating Inclusive Green Finance and Sustainable Finance in PNG.” The panel included:

• Mrs. Debra Sungi, Acting Managing Director, Climate Change & Development Authority (CCDA)
• Mr. Sakiusa Tuisolia, Country Representative, Global Green Growth Institute Papua New Guinea & Solomon Islands
• Mr. Saliya Ranasinghe, Executive Director, Centre for Excellence in Financial Inclusion
• Mr. Benoit Chassattee, Resident Representative, Agence Française de Développement (AFD)
• Mr. Markus Scheuermaier, Resident Representative, International Finance Corporation (IFC)

Each panelist shared their organization’s involvement in the sustainable finance landscape globally and their efforts in assisting Papua New Guinea to develop and implement green growth strategies that align economic development with environmental sustainability. These strategies include policies, investment plans, and regulatory frameworks that encourage sustainable practices and green investments.