Port Moresby, Papua New Guinea, March 25, 2024 – The Agence Française de Développement (AFD) has pledged a significant Euro 6 million grant towards the Greening of the Pacific Financial Systems (GPFS), marking a significant milestone in promoting sustainable finance initiatives to address climate change in the Pacific.  The Euro 6 million Grant Agreement was signed   during the Launch of the Green Finance Center (GFC) in Port Moresby, Papua New Guinea, between AFD represented by its Executive Director, Mr. Philippe Orliange, and the Global Green Growth Institute (GGGI), represented by Mr, Sakiusa Tuisolia, the GGGI Country Representative for Papua New Guinea and Solomon Islands.  GGGI will be the delivery partner for GPFS and GFC.

The signing was witnessed by the Minister for Environment and Climate Change, Hon. Simo Kilepa, Chief Guest and Chief Secretary to the Government of Papua New Guinea, Mr. Ivan Pomaleu, Governor of the Bank of Papua New Guinea, Mrs. Elizabeth Genia, the French Ambassador to Papua New Guinea, His Excellency Guillaume Lemoine and other dignitaries.    

The 6 million Euros GPFS program aims to improve the capacity of Pacific financial institutions to manage climate risks, mobilize greater capital to meet costs of climate change in the Pacific Region and develop transformative regional financial initiatives. 

The Grant has a specific component of Euro 2.8 million exclusively for Papua New Guinea to support the work of the newly launched Green Finance Centre (GFC) to implement the Bank of Papua New Guinea (BPNG) led Inclusive Green Finance Project (IGFP) Roadmap with the aim to increase flow of finance towards inclusive green growth activities and projects in Papua New Guinea.

The GFC will initially facilitate its governance and establishment and then develop a Green Refinancing Facility aimed at de-risking lending in Papua New Guinea’s financial sector in order to be inclusive, climate-resilient, and supportive of green economic initiatives.

The GPFS on the other hand is a collaborative effort that marks a significant step in increasing the preparedness of central banks to adapt and become more resilient to climate shocks as well as improve regional cooperation between central banks. Under the program, GGGI will increase capacity in climate resilience and green growth of development banks in PNG, Fiji, Solomon Islands, Tonga, Samoa and Vanuatu.

The Chief Guest at the Green Finance Center Launch, Chief Secretary to the Government of Papua New Guinea, Mr. Ivan Pomaleu, thanked the Government of France and AFD for their funding commitment and support for the Pacific and Papua New Guinea. “Through the support of the AFD funded project, Greening the Pacific Financial System, Papua New Guinea is leading and showing the way for other central banks in the Pacific. We are proud to be the first country in the Pacific to have launched an IGFP with an Inclusive Green Taxonomy,” said Mr. Pomaleu.

The Governor for Bank of Papua New Guinea, Mrs. Elizabeth Genia welcomed AFD’s funding and said, “Climate change presents complex and interconnected risks to the banking system, requiring proactive risk management strategies and adaptation measures to safeguard financial stability and resilience. Banks need to integrate climate-related considerations into their risk management frameworks, lending practices, investment decisions, and strategic planning processes to effectively navigate the challenges and opportunities posed by climate change”.

The Executive Director for AFD, Mr. Philippe Orliange, reaffirmed the commitment and interest of AFD in Papua New Guinea and the Pacific and said, “We are witnessing the emergence of a robust financial eco-system led by the Pacific Central Banks and Development Banks which is putting the greening of the Pacific financial system in the hearts of AFD’s collective work to ensure a sustainable and inclusive financial system in the Region that is responsive and adapting to the impacts of climate change”

The GGGI Country Representative for Papua New Guinea and Solomon Islands, Mr. Sakiusa Tuisolia, fully welcomed the significant funding from AFD and said it will help further advance the work of the Green Finance Center to implement the IGFP Roadmap as well as replicate and scale up the greening of the financial systems of countries across the Pacific Region.

Photos:

Signing of the Agreement “Greening the Pacific Financial System” between GGGI and AFD.

GGGI Country Representative for Papua New Guinea, Sakiusa Tuisolia and AFD Executive Director, Mr. Philippe Orliange (front) proudly shake hands after signing the “Greening the Pacific Financial System” agreement.

In witness to the event are (L-R):

Governor for Bank of Papua New Guinea, Ms. Elizabeth Genia; Dr. Alfred. Hannig, Executive Director for Alliance for Financial Inclusion (AFI); His Excellency Pete Zwart – New Zealand High Commissioner; Mr. George Awap, Assistant Governor -Bank of Papua New Guinea; His Excellency Guillaume Lemoine – French Ambassador to PNG; and Minister for Environment, Government of Papua New Guinea, Honorable Simon Kilepa.