Financial policymakers and regulators across the AFI network recognize the dual threats of financial exclusion and climate change as key barriers to financial stability, as well as the role of financial inclusion in helping vulnerable communities build resilience and mitigate losses caused by climate change.
Through effective financial inclusion policies, regulation and national strategies, inclusive green finance (IGF) is helping mitigate and build resilience against the negative impacts of climate change. Under the IGF remit, financial institutions are providing vital support to those navigating an uncertain environment by promoting green products within savings, credit, insurance, money transfers and new digital delivery channels.
By doing so, IGF plays a key role in enabling the implementation of the UN Sustainable Development Goals (SDGs), particularly SDG 1 (no poverty), SDG 7 (affordable and clean energy) and SDG 13 (climate action).
Fundamental and emerging topics under IGF are explored in-depth through AFI’s Inclusive Green Finance Working Group (IGFWG).
Sharm El Sheikh Accord: Financial Inclusion, Climate Change & Green Finance
The Sharm El Sheikh Accord was endorsed by AFI members at the 2017 AFI Global Policy Forum. It commits AFI members to work together and with partners to identify, understand and implement financial inclusion policy solutions that also have positive outcomes for the environment, focusing on communities that are most vulnerable to climate change.
AFI’s Inclusive Green Finance workstream is part of the International Climate Initiative (IKI), supported by the German Federal Ministry for Economic Affairs and Climate Action (BMWK), based on a decision by the German Bundestag.
IGF Maya Declaration Commitments by AFI members
Bangladesh Bank (jointly with the Microcredit Regulatory Authority and Ministry of Finance), Reserve Bank of Fiji and Central Bank of Egypt were the first AFI members to make Maya Declaration targets on climate change. They were joined by Central Bank of Solomon Islands, Reserve Bank of Zimbabwe, Superintendencia de la Economia Popular y Solidaria de Ecuador and Bank of Zambia, all of which made commitments on IGF at the 2019 AFI Global Policy Forum.
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Inclusive green finance
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