Port Moresby, Papua New Guinea, March 25, 2024 – The Global Green Growth Institute (GGGI), joined the Government of Papua New Guinea, Bank of Papua New Guinea, the Government of New Zealand, the Agence Française de Développement (AFD) to launch the Green Finance Centre  in Papua New Guinea’s Capital, Port Moresby.

The establishment of the Green Finance Center is a collaborative effort led by the Bank of Papua New Guinea with funding from the Government of New Zealand and GGGI as the delivery partner to address environmental and climate change challenges in Papua New Guinea through innovative inclusive climate finance and green investment mechanisms in the financial and banking sector.  This initiative aligns with the Bank of Papua New Guinea’s Third National Financial Inclusion Strategy that was launched in 2023 as well as the Government of Papua New Guinea’s commitment to achieving low carbon, sustainable and inclusive economic growth and addressing climate change risks and impacts across the country. This collaborative effort marks a significant step towards fostering sustainable development and low carbon economic growth in the Pacific region through the greening of its financial sectors.

The Green Finance Center is part of the Inclusive Green Finance Policy (IGFP) which has been implemented by GGGI in PNG since 2021 in collaboration with the Bank of Papua New Guinea, Center for Excellence in Financial Inclusion (CEFI), the Climate Change Development Authority (CCDA) and financial institutions.  The IGFP has received a total funding of USD 670,000 from the  New Zealand Ministry of Foreign Affairs and Trade (MFAT) under the Low Emission Climate Resilient Development Program (LECRD) program. The IGFP is implemented under the guidance of a Steering Committee that is chaired by the Bank of Papua New Guinea.

The Green Finance Center’s core role is to implement the IGFP Roadmap in collaboration with PNG’s financial institutions and one of its major undertakings is to establish a Green Refinancing Facility (GRF) with a capitalization of Euro 1.8 million.  The Center will also work with banks and financial institutions to integrate the inclusive green taxonomy onto their green loan products. This part of the work will now be funded by the  AFD for which a Grant Agreement of Euro 6 million was also signed at the Launch between Mr. Philippe Orliange, the Executive Director of AFD and Mr. Sakiusa Tuisolia, the Country Representative for Papua New Guinea and Solomon Islands of which Euro 2.8 million will be to fund the Green Finance Center and IGFP implementation.

The Chief guest at the Launch, Mr. Ivan Pomaleu, the Chief Secretary in the Office of the Prime Minister and National Executive Council said that the establishment of the Green Finance Center was a bold forward step in greening the financial sector in Papua New Guinea which will mobilize green investment opportunities to address climate change impacts and ensure a more resilience future for Papua New Guineans.

“In line with the government’s mandate, the Green Finance Centre will strongly advocate for banks to channel loan investments in sectors such as agriculture, energy, SMEs and bioeconomy to promote low-emission options to reduce our carbon footprint and lead by example in the region and globally, demonstrating our commitment to addressing climate change impacts,” said Mr. Pomaleu.

“The Bank of Papua New Guinea is committed to promoting national financial inclusion and the greening of the financial sector and the launch of the Green Finance Center underscores the commitment of all stakeholders involved to drive sustainable development and address climate change challenges through innovative financial mechanisms,” said Mrs. Elizabeth Genia, Governor for Bank of Papua New Guinea.

“The New Zealand High Commissioner to Papua New Guinea, His Excellency Peter Zwart, emphasized that the climate change and its impacts are real and responsive climate action is increasingly urgent. “The New Zealand Government’s Ministry of Foreign Affairs and Trade is proud to provide funding for IGFP and collaborate with Bank of Papua New Guinea and GGGI in establishing the Green Finance Center which will play a crucial role in working with financial institutions to mobilize increased green lending and investments in Papua New Guinea,” said His Excellency Peter Zwart.

Mr. Philippe Orliange, expressed his support and said that AFD was proud to be the new funding partner to continue with the implementation of the IGFP and the work of the Green Finance Center and replicate the success of greening Papua New Guinea’s financial sector to the other countries in the Pacific Region.

Photos  – Launch of GFC

To mark the launch of Green Finance Centre in Papua New Guinea, Minister for Environment, Honorable Simon Kilepa and Governor for Bank of Papua New Guinea, Ms. Elizabeth Genia (front), are joined by (L-R) Mr. George Awap, Assistant Governor -Bank of Papua New Guinea, Dr. Alfred. Hannig, Executive Director for Alliance for Financial Inclusion (AFI), His Excellency Pete Zwart – New Zealand High Commissioner, His Excellency Guillaume Lemoine – French Ambassador to PNG, Chief Secretary for Government of Papua New Guinea, Mr. Ivan Pomaleu and Mr. Philippe Orliange, Executive Director for Agence Française de Développement (AFD); in cutting of the Green Finance Centre cake.