Port Moresby, Papua New Guinea, 12 June 2023– The Prime Minister of Papua New Guinea (PNG), Rt. Honorable James Marape has officially launched PNG’s first Inclusive Green Finance Policy (IGFP) in partnership with the Bank of PNG (BPNG). “We celebrate the establishment of the Green Finance Policy by the Bank of PNG which I believe is the first of many steps toward transitioning Papua New Guinea from a high-carbon economy to a sustainable and blue economy,” Rt. Hon. Prime Minister stated. The IGFP serves as an important roadmap for building a green economy.
The IGFP’s unique green taxonomy feature was also highlighted by the Prime Minister which sets the foundation for a long-term commitment to PNG in its vision and plan for inclusive development going forward.
Led by the BPNG, and in partnership with the Global Green Growth Institute (GGGI) with support from the New Zealand Government, the IGFP is a visionary policy and the first of its kind in PNG and the Pacific. The Acting Governor of the BPNG, Ms. Elizabeth Genia, emphasized the importance of the policy in enabling the incorporating green finance into business practices, and proactively adopting an approach to investing in projects and businesses which aim to address sustainability and environmental risks in the long term.
“To support financial institutions in this important journey, the Bank of PNG in collaboration with its partners will establish a Green Finance Center (GFC) at the CEFI Office,” Ms. Genia said highlighting the sustainability and next steps following the launch. “The Center will provide necessary support, including staff training, technical assistance, and the design of innovative green lending products,” Ms. Genia added.
The GFC will be a key pillar of support for financial institutions to integrate environmental and social factors in their investments, and will serve to provide training, technical assistance, and innovation support to financial institutions in PNG.
Similar sentiments were shared by the Assistant Governor of the Financial System Stability Group BPNG and the Steering Committee Chair of the IGFP, Mr. George Awap. “Inclusive Green Finance is a new concept in the region, requiring extensive collaboration between Bank of PNG, domestic financial institutions, various ministries, and stakeholders,” highlighted Mr. Awap.
Acknowledging the leadership of the BPNG, the GGGI Country Representative for PNG, Mr. Sakiusa Tuisolia highlighted the support of the New Zealand funded Low Emissions Climate Resilient Development (LECRD) program through with the Green Finance Center (GFC) will be established, ensuring continuity of this support. “The first step in the realization of the GFC is already underway,” said Mr. Tuisolia.
The launch of the IGFP is a significant milestone for Papua New Guinea as it remains steadfast in fulfilling its international commitments to the Alliance for Financial Inclusion under the Sharm El-Sheikh Accord. The Accord calls on all stakeholders to embrace the power of inclusive green finance and work together to build a greener, cleaner, and brighter future for all of PNG.