A platform for financial regulators and policymakers to provide policy leadership and regulatory guidance related to inclusive green finance.
Launched in 2019 in Kigali-Rwanda, IGFWG is working to develop green financial inclusion policy solutions while focusing on the communities most vulnerable to climate change. In response to the increasing interest from the AFI network, member institutions committed to work together and collaborate with partners in identifying, understanding and implementing inclusive green finance policy solutions.
AFIs inclusive green finance 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.
Najwa Mouhaouri , Bank Al-Maghrib
Veronica Bayangos, Bangko Sentral ng Pilipinas
Gender Focal Point
Patience Yeboah-Nkansah, Bank of Ghana
Green Credit Risk Guarantees (with SMEFWG):
During the 3rd IGFWG Meeting, members decided to generate guidance on how to adapt the Credit Risk Guarantees for projects, businesses or initiatives that build resilience to climate-related risks or mitigate the climate change causes with special focus on the role of regulator as the main guarantor of loan losses or as an enabler for such protection policies.
Credit risk guarantees are one of the many potential de-risking instruments to help accelerate green lending support from central banks and build vulnerable population’s resilience to climate change. The implementation of this risk financing framework by central banks will leverage banking loans for low carbon solutions and green projects which otherwise would not have been able to receive financing from the private sector. They will also help to share credit risks stemming from climate change between the private and public sectors.
Leveraging DFS in advancing IGF initiatives:
Across AFI member institutions, the interest of the potential intersections between digital financial services and inclusive green finance is growing more and more. The relevance of this topic increased after COVID-19 pandemic outbreak. This particular event has shown that digital channels can be used a a powerful tool to reach the most vulnerable sectors. Nevertheless, it has not yet been a DFS-related green finance initiative in place and therefore no experiences from AFI members to share. This knowledge product will aim to come up with a reference material that identifies interstices and explores opportunities to integrate digital finance and inclusive green finance. Ultimately, the paper aims to provide guidance for policymakers and financial regulators on policy approaches to leverage digital finance in advancing inclusive green finance.
Only a few financial regulators are collecting and sharing information on inclusive green finance for specific purposes. Disaggregated data collection on green finance activities is, in general, still lacking. Nevertheless, more and more countries are interested in embarking on the path of green data collection.
Climate Change, Sustainable Finance and Financial Stability (with GSPWG):
There is a clear recognition from financial regulators that climate change deepens poverty, hits the most vulnerable hardest and that climate change would be a real financial risk, especially in the countries where AFI members are. This subgroup aims guiding members on key issues in climate risk and financial stability.
|Events||1st: IGFWG Meeting in Kigali Rwanda|
CB BAM-AFI Member Training on Green Finance
Global Grren Finance Symposium on Grren Financial Inclusion in the Arab Region(FIARI)
|2nd: Virtual Meeting|
3rd: Virtual Meeting
|4th: Virtual Meeting|
5th: Virtual Meeting
The webinar discussed potential solutions to ensure that the economic recovery post COVID-19 is sustainable and how to integrate Inclusive Green Finance (IGF) policies in such a recovery. The webinar specifically focuses on the role of financial regulators in this process and how to develop strategic approaches to limit global environmental degradation and climate change, and to ensure that recovery plans do not lead to further exclusion. Considering how severely MSMEs have been affected by the pandemic, specific emphasis was on how to ensure that their recovery is inclusive.- Read More
The regulatory and supervisory environment is key in enabling innovative ways and mechanisms to reduce the climate insurance protection gap. Supervisors are well-placed to stimulate action that can strengthen resilience of the most vulnerable segments of the population against climate and disaster risks. By adopting proportionate regulatory and supervisory approaches, they can foster supply and demand of climate risk solutions. In addition, supervisors can play an important role in ensuring the incorporation of responsible insurance solutions in national strategies on disaster risk management.- Read More