The Bank of Papua New Guinea (BPNG), representing the Green Finance Centre (GFC), signed a Memorandum of Understanding (MoU) with the International Finance Corporation (IFC) and the Securities Commission of Papua New Guinea (SCPNG) to establish a thematic bond market and develop the next version of BPNG's Inclusive Green Finance Taxonomy (Green Taxamony). The MoU was established in the presence of Mr. Khwima Nthara, Country Manager for The World Bank Group as he assured the Governor of BPNG of their ongoing support in Port Moresby on November 13th, 2024. He also pointed out that Ms. Elvira Morella’s selection of PNG for her first official visit as IFC Manager highlights the country’s strategic importance to both the IFC and the World Bank Group. Under this collaboration, IFC will assist the GFC in updating the Green Taxonomy, focusing on five key sectors to clarify what qualifies as green and sustainable investment. The MoU also outlines GFC's role in working with IFC to help the Securities Commission of Papua New Guinea establish a Thematic Bond Framework for green, social, sustainability, and sustainability-linked bonds. This framework aims to attract sustainable finance, support climate projects, and help PNG meet its goal of reducing greenhouse gas emissions by 50% by 2030 and achieving carbon neutrality by 2050, requiring over US$1 billion in the next decade. Governor Elizabeth Genia underscored the importance of the MoU, describing it as a crucial milestone in PNG's efforts to build a sustainable and inclusive financial system. She highlighted that the collaboration with IFC and the Securities Commission is key to positioning PNG as a leader in sustainable finance, helping to achieve the country’s climate and development goals. The initiative aims to create a sustainable capital market that attracts private sector investments, supports local communities, promotes sustainable development, creates green jobs, and reduces PNG’s carbon footprint. The key deliverables, including technical screening criteria for the Green Taxonomy and Thematic Bond Framework, are expected to be finalized by 2025.