Port Moresby, Papua New Guinea, 27 May 2026 – A major milestone was achieved on the opening day of the Green Finance Summit 2026 with the signing of a Letter of Intent (LoI) between the Agence Française de Développement (AFD), the Bank of Papua New Guinea (BPNG) and the Global Green Growth Institute (GGGI) to support the continued growth of Papua New Guinea’s green finance ecosystem. 

The Letter of Intent formalizes a mutual understanding between the three institutions to cooperate towards AFD’s proposed investment of EUR 15 million (app. PGK 75M) into Papua New Guinea’s Green Finance Facilities, supporting the implementation of the Bank of Papua New Guinea’s Inclusive Green Finance Policy. 

The partnership represents a significant step forward in mobilizing climate finance and expanding access to sustainable financing for businesses and communities across the country. 

Under the LoI, the partners will work together to support the Green Finance Centre in identifying and developing a pipeline of green loans aligned with Papua New Guinea’s Inclusive Green Finance Taxonomy. The agreement also seeks to explore additional financing opportunities from development partners to complement AFD’s investment and ensure the long-term sustainability of the Green Refinancing Facility and Green Guarantee Facility. 

The Bank of Papua New Guinea will continue to support the Green Finance Centre with staff and resources and facilitate relevant government approvals where necessary. AFD will pursue opportunities to scale green finance facilities, while GGGI will provide technical support to help oversee the implementation of the facilities and strengthen institutional capacity. 

Speaking at the Summit, Bank of Papua New Guinea Governor Ms. Elizabeth Genia emphasized the urgency of climate action and the importance of ensuring green finance remains inclusive. 

“We must be ambitious and we must also act with urgency. The need to build climate resilience is no longer a future challenge; it is an urgent reality affecting our communities today. Financial inclusion must remain at the heart of this agenda, ensuring that green finance supports our rural communities, SMEs, women-led enterprises, and all Papua New Guineans striving to build a more resilient future.” 

Speaking during the signing ceremony, Mr. Muhammad Ali Shaikh, GGGI Country Representative for Papua New Guinea, Solomon Islands and Vanuatu welcomed the strengthened partnership and highlighted the significance of the agreements reached at the Summit. 

“I would also like to acknowledge the Financing Agreement signed today for the Green Guarantee Facility between the Bank of PNG and AFD, and the Letter of Intent between the Bank of PNG, AFD and GGGI on additional funding into the green finance facilities. These are partnerships built on years of careful technical work, and they will support PNG’s green growth for years to come.” 

Mr. Benoit Chassatte, Country Representative of Agence Française de Développement (AFD), reflected on the partnership’s progress and the opportunities ahead. 

“AFD feels privileged to be a special partner to accompany and support BPNG in implementing the green finance roadmap. We are proud of BPNG’s accomplishments as we are about to harvest the fruits of unwavering efforts. These have led to the establishment of the Green Financing Facilities and, shortly, to the first green investments being financed through the facilities. We will soon be celebrating the success of this team effort.” 

The Letter of Intent will remain in effect for an initial period of two years and provides a framework for continued collaboration, knowledge sharing, resource mobilization and coordinated action to advance green finance and climate-resilient development in Papua New Guinea. 

The signing underscores the shared commitment of BPNG, AFD and GGGI to strengthen sustainable finance, drive inclusive economic growth, and support a greener and more resilient future for Papua New Guinea.

Media Enquiries

Green Finance Centre Papua New Guinea

Milka Akane, Communications and Knowledge Sharing Officer

Mobile: 7183 4301 or Email: milka.akane@gggi.com

GGGI Regional Communications and Knowledge Sharing Lead – Pacific

Kelly Vacala – kelly.vacala@gggi.org