27 March 2024

Papua New Guinea’s Green Finance Center will drive sustainability, resilience and inclusion

Inclusive Green Finance in Papua New Guinea has taken a major step forward with the opening of the country’s Green Finance Center.

Chief Secretary to Government, Ivan Pomaleu, Governor of the Bank of Papua New Guinea, Elisabeth Genia, and AFI Executive Director, Dr Alfred Hannig, spoke at the launch for the Center, which will work to build sustainability, resilience, and inclusivity into the banking and financial sector.

The Center will implement the country’s groundbreaking Inclusive Green Finance Policy, which AFI supported by providing technical input, policy examples from other countries, and Central Bank peer review.

It will also engage with the private sector to advocate for green, sustainable investments, align national efforts against international best practice on inclusive green finance, and drive inclusive and sustainable financial initiatives including on women, small businesses, bio-diversity and agriculture.

“Today marks a significant milestone for the Bank of Papua New Guinea, as we establish an entity dedicated to implementing the Inclusive Green Finance Policy and spearheading all green finance initiatives within our nation,” said Governor Genia.

“The Green Finance Center is poised to drive the transformation of PNG’s financial sector,” said  Chief Secretary Pomaleu. “Through collaboration with the Alliance for Financial Inclusion, our Centre will be working with more matured central banks in this space, who will assist us to develop a more sustainable and inclusive financial ecosystem.”

“AFI was pleased to provide input on setting up the Center, and we look forward to supporting and relaying the Center’s work,” said Dr Hannig. “The insight generated here will resonate far and wide across the AFI network, encouraging and inspiring other countries to follow a similar path.”

The Green Finance Center benefits from technical assistance from the Global Green Growth Institute, and financial support from the French Development Agency (AFD) and the New Zealand Ministry of Foreign Affairs and Trade.

Dr Hannig was making his first visit to Papua New Guinea since Governor Genia, the first woman to hold the role, took office in January 2024. The two leaders discussed BPNG’s financial inclusion priorities and how the AFI network might support these, as well as upcoming joint activities. They also explored how to develop collaboration opportunities with Inclusive Green Finance funders, a topic that is attracting increasing donor attention not just in Papua New Guinea but in the wider Pacific region.

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