The Inclusive Green Finance Policy (IGFP) Project was initiated in 25 June 2021 with the aim of greater understanding of climate resilience and inclusive green growth in PNG. IGFP marks the first step towards green finance in PNG, thereby facilitating future efforts to monitor, regulate, and promote green finance flows in the country.
‘Climate Resilience and Inclusive Green Growth’ is one of the key pillars of Papua New Guinea’s Development Strategy. Its importance is emphasized in ‘PNG Vision 2050’, ‘PNG Development Strategy Plan 2010-2030’, ‘National Strategy for Responsible Sustainable Development (StaRS)’, and ‘Medium Term Development Plan 2018-2022’. The government has set various targets to achieve this goals under the enhanced National Determined Contributions (NDCs) such as reducing annual net emissions from deforestation and forest degradation due to agriculture expansion and commercial logging by 10,000 Gg CO2 eq. compared to 2015 level, encourage the introduction of fuel-efficient transport equipment, promoting climate-friendly agriculture in oil palm, cocoa and coffee platform, reducing electricity demand through energy efficiency, promting REDD+, downstream processing and enforce economic productive and sustainable livelihoods.
Meeting these targets requires – in addition to sound policies and enabling environment for the public sector- a significant and sustained investment from the private sector. These investments (or “green” finance) should be directed towards “green” activities that contribute towards building climate resilience and promoting inclusive green growth.
However, at present, PNG lacks an official taxonomy to guide government agencies, financial institutions, and other private sector entities on which activities are considered ‘green’ and/or ‘inclusive’. For government agencies, this makes it difficult to monitor, regulate, and promote green financial flows into and within the country. For financial institutions and private sector entities, it is difficult to know whether they are complying with a certain policy (e.g., mandatory disclosure on green investments) or are eligible for incentives related to green activities (e.g., low interest green loans).
Hence this project aims to address this gap by developing a PNG policy on inclusive green finance – the IGFP. The IGFP woould include a Green Taxonomy that will help promote green financial flows thus promoting green activities and overall help achieve NDC targets on climates resilience and inclusive growth for PNG.
The goal of the IGFP is to increase and facilitate the flow of domestic and international funds and investment in a systematic manner towards business, projects and initiatives that are inclusive and / or green. Te are 3 outputs of the IGFP Project :
The project launched in June 2021 and will be completed June 2024.
The project is led by a Steering Committee (SC). They are advised by Technical Working Group (TWG) composed of public and private sector representatives.
Steering Committee The Steering Committee helps to steer a project through from start to completion and its role is to provide advice, ensure delivery of the project outputs and the achievement of project outcomes. The Steering Committee members are:
Technical Working Group The Technical Working Group (TWG) define the necessary regulatory, technical and financial preconditions to be put in place within a feasible period to allow the green finance policy to become operational.
The Global Green Growth Institute (GGGI) serves as the Secretariat with support from Agriculture and Finance Consultants GmbH (AFC).
Mr. Saliya Ranasinghe Financial Inclusion Adviser, Centre For Excellence In Financial Inclusion (CEFI) firstname.lastname@example.org
Mr. Sakiusa Tuisolia Country Representative, GGGI PNG Office
Mr. Jisu Min Senior Investment Officer, GGGI Headquarters email@example.com
With the support of the New Zealand Ministry of Foreign Affairs and Trade.