By Dalcy Lulua
BANK of Papua New Guinea (BPNG) Acting Governor Elizabeth Genia says financial institutions have a responsibility to integrate environmental and social factors into their investment decision-making processes.Genia made the remark during the launching of the Inclusive Green Finance Policy (IGFP) in Port Moresby.
“Green finance refers to financial investments and initiatives that promote sustainable economic growth while reducing negative environmental impacts,” Genia said.“It encompasses a range of activities such as investments in renewable energy projects, sustainable infrastructure development, energy-efficient technologies and adaptation of environmentally-friendly practices by businesses.”
Genia said financial institutions can develop innovative financial products such as green bonds and sustainability-linked loans to facilitate green investments.“BPNG with its partners will set up a green finance centre at the Centre of Excellence and Financial Inclusion (CEFI) office to provide the support needed for the financial institutions to embark on this important journey,” she said.
“Staff training, provision of technical assistance and the design of innovative, green, lending products are some of the activities that is expected to be undertaken by the centre.”Genia said there is a possibility of mobilising international funding to refinance green lending portfolios.
She said BPNG expects the support of financial institutions, commercial banks, finance companies, micro banks and savings-and-loan societies in the implementation process of the Inclusive Green Finance Policy.
