The Bank of Papua New Guinea (BPNG) on Monday launched the Green Finance Center (GFC), an innovative approach to mitigate the risks of climate change impacts on the business sector. The Bank’s Governor, Ms. Elizabeth Genia said that the launching itself is a milestone achievement for BPNG and the country as it aims to achieve sustainability in the local business sector in the face of climate change. “The official launching of the Green Finance Center within the Center for Excellence in Financial Inclusion (CEFI), represents reaching a significant milestone on the journey towards managing climate change risks,” Ms. Genia said. “The significance of the Green Finance Center milestone is in its structure and in its partnership- partnering relationship.” She views the GFC as a specialized hub providing the means for PNG to achieve sustainability through gathering intelligence, and processing it into relevant, practical and meaningful data relevant for the market. “The GFC’s purpose is clear, it facilitates access to ways and means to achieve sustainability, resilience and inclusiveness,” said the BPNG Governor. The GFC seeks to fulfill this through the development of innovative green finance products such as green bonds and sustainability linked loans particularly for businesses that are vulnerable to the impacts of climate change. “Climate change poses a significant threat to MSMEs, it affects the enterprises performance, competitiveness and sustainability,” stated the Bank’s Governor. Currently there are several barriers that prevent MSMEs from accessing green finance, but the GFC should change that. “Through fostering collaboration with financial service partners, the GFC will specially target intervention to assist MSMEs green transition,” stated Ms. Genia. Also, the launching of the GFC means that the Inclusive Green Policy and the Inclusive Green Taxonomy launched in 2023 now have a purpose built structure to give them a real world practical application, explained Ms. Genia. The Green Taxonomy is a framework for defining what can be called environmentally sustainable investments, while the Inclusive Green Policy facilitates future efforts to monitor, regulate, and promote green finance flows in the country. Ms. Genia then went on to thank the people that supported the development and setting up of the GFC. She thanked the representatives of the Global Green Growth Institute (GGGI), the Alliance for Financial Inclusion, the New Zealand Government and the France Development Agency. Lastly, she thanked the Center for Excellence in Financial Inclusion. "I also recognize the leadership shown by CEFI to weave these relationships and the particular expertise and contribution of each partner into the strong fabric that has produced the Green Finance Center."