The country’s banking sector is preparing to introduce new lending standards that encourage environmentally responsible projects and help banks better manage environmental and social risks.
With that there was a training workshop organised by the Bank of Papua New Guinea (BPNG) through its Green Finance Centre in partnership with the International Finance Corporation (IFC).
The workshop brought together regulators, commercial banks and representatives from central banks across the Pacific to learn how the new green finance rules will work.
The training covered guidelines that will help banks identify and support environmentally friendly projects, classify green loans, and assess environmental and social risks before approving financing.
Bank of Papua New Guinea Governor Elizabeth Genia said the workshop was an important step in helping financial institutions understand and apply the country's new green finance policies.
"Through these engagements, we are not only sharing knowledge and international best practices but also advancing a collective call to action towards greening Papua New Guinea's financial system," Genia said.
She said the new measures will help banks put green finance policies into practice and strengthen responsible lending across the country.
The workshop is part of wider efforts to promote sustainable finance, improve how environmental and social risks are managed, and support PNG's long term economic growth.
Representatives from the central banks of Fiji, Solomon Islands, Vanuatu, Samoa and Tonga also attended and shared experiences on green finance and risk management.
IFC Environmental and Social Sustainability Manager for East Asia and the Pacific, Deniz Baharoglu, said PNG's new environmental and social risk management guidelines are a major step forward for sustainable finance.
"This achievement reflects BPNG's strong leadership and valued partnership with IFC," Baharoglu said.
"Continued capacity building for financial institutions will be critical to translate regulatory guidance into practical risk management and financing decisions that support sustainable private sector development."
The workshop also highlighted PNG's progress since joining the Sustainable Banking and Finance Network in April 2024.
Global Coordinator Rong Zhang said PNG has made significant progress in building the foundations for sustainable finance within a relatively short period.
The workshop concluded with discussions focused on helping banks implement the new standards in line with international best practices as PNG continues working towards a more sustainable and climate resilient economy.
For ordinary Papua New Guineans, the new standards are designed to encourage banks to support environmentally friendly projects while making sure lending decisions consider environmental and social impacts, helping build a stronger and more resilient economy for the future.
