Inclusive green finance (IGF) resource database
National financial sector strategies
Regulators in the AFI network have begun responding, often with urgency, with strategies, policies and regulations to mitigate and build resilience to the impacts of climate change in their respective countries. There is an emerging trend in the network to link financial inclusion and climate change on a national strategic level, either in a national financial inclusion strategy (NFIS) of other financial sector strategies.
NFIS with green elements
Sao Tome and Principe
Other related financial sector strategies
AFI member institutions on the 4Ps of inclusive green finance
AFI’s 4P framework provides financial regulators with an intuitive was to consider the full range of policy actions they can take for inclusive green finance. All policies under the 4Ps either catalyze financial services for the private sector or use financial infrastructure to deploy finance for climate action.
Promotion policies and initiatives prepare the private sector to offer financial services for green projects or related climate action activities to qualifies beneficiaries, for example, through awareness raising, information sharing, capacity building and data collection.
- National Stakeholder Capacity Building and Coordination Workshop for the upcoming Inclusive Green Finance Roadmap
- Encouraged commercial banks to repackage loans for populations affected by disasters
- Conducted capacity building on sustainable finance
- Sensitization and awareness raising on green finance and climate risks in the financial sector
- Finalizing regulatory directive on climate change-related risks
- Capacity building on ESG risks
- Established a regulatory working group on sustainable finance comprised of the Ministry of Finance, the Securities and Exchange Commission, the Office of Insurance Commission and the Stock Exchange of Thailand
Provision policies help to ensure financial resources for green projects or related climate action activities are provided for qualified beneficiaries, whether through lending policies, refinancing or other financing schemes.
- Relaxed conditions for loans packaged with climate insurance
- Offered longer term financing to financial institutions to on-lend to MSMEs for products such as renewable energy
- Offers financial services for climate-smart technologies to build resilience into agricultural supply chains
- Medium-Term Advances to Licensed Banks Program provides subsidized loans for critical development sectors including renewable energy and agriculture
- Directed all banks to dedicate 10% of their portfolio to green projects
- Refinancing facilities for banks to offer subsidized loans for green technologies,
- Refinancing facilities for subsidized loans to rebuild from floods and fires, modelled on a program that supported post-earthquake recovery and reconstruction
- Rescheduling of retail loan payments in the event of a disaster
- Moratoriums on loan repayments for affected borrowers by disasters
- Assists businesses affected by Tropical Cyclone Pam through concessional lending to commercial banks at interest rates of one percent via the Vanuatu Disaster Reconstruction Credit Facility
- Lowered the reserve requirement for commercial banks by two percentage points (from seven percent to five percent) to incentivize banks to lend to affected low-income households
Protection policies reduce financial risk by “socializing” potential losses through insurance, credit guarantees, socializing payments or other related risk-sharing mechanisms.
- Use of mobile payments to disburse funds from its “Help for Homes Initiative” to people affected by Tropical Cyclone Winston
- Allowed people to withdraw 20 percent from their retirement accounts to rebuild their homes
- Fiji National Provident Fund provided relief assistance to members through its retirement fund
- Established Fiji’s Natural Disaster Rehabilitation Facility, a climate resilience and adaptation program to replace damaged inventory; cover the loss of sales, including working capital; repair or replace damaged plants, equipment and machinery; restore damaged buildings, including resorts and hotels; and replace business vehicles for affected businesses and homeowners
- Introduced climate multi-risk insurance products to protect investments in major cereal crops from climate-related damages, including drought, excess moisture, hail, frost, wind and sandstorms
- Established the Anchor Borrower’s Program to link smallholder farmers with large-scale processors to alleviate the impact of climate change including revenue index insurance
- Provides subsidies to incentivize bank lending to smallholder farmers facing climate risks
- Guaranteed 50 percent of the loss if a smallholder farmer cannot repay a loan through Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) through bundling climate risk insurance with subsidized lending and credit guarantees
- Approved an innovative contingency insurance product for business interruption specifically designed for MSMEs and MFIs
Prevention policies aim to avoid undesirable outcomes by lowering financial, social and environmental risks.
AFIs Inclusive Green Finance (IGF) workstream is part of the International Climate Initiative (IKI) supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), based on a decision of the German Bundestag.
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