Papua New Guinea and the Pacific Island countries and territories are on the frontline of climate and biodiversity loss impacts.
“Your voices are decisive to push for higher climate ambition, adaptation solutions and also financial promises,” said Virginie Bleitrach, AFD’s Regional Director Pacific Ocean, during the inaugural Green Finance Summit 2025 in Port Moresby.
“We share your concerns that international climate finance (including the commitment made at COP29) will not be enough to address all the needs for climate mitigation and adaptation,” Bleitrach said.
“There is indeed a need to transform financial systems worldwide and for all actors, both public and private, to work together to enable the true mobilisation of trillions in support of green economies.
“That is precisely the essence of what we humbly strive for at AFD. As a public development bank, we strongly believe that there is an urgent need to leverage all financial flows, public and private, towards the Sustainable Development Goals (SDGs).”
She applauded BPNG's efforts, stating: "This gathering is the first of its kind in Papua New Guinea, but also in the Pacific region. I wish to warmly congratulate the Bank of Papua New Guinea for stepping into the adventure of developing a full green finance set of policies and tools."
PNG reinforced its leadership in sustainable development across the Pacific with the successful hosting of the event, organized by the Green Finance Centre (GFC) under the auspices of the Central Bank of Papua New Guinea (BPNG).
It brought together a powerful coalition of government leaders, development partners, financial institutions, and international organizations.
The Summit, held on March 24, gathered senior government officials from the Treasury, Energy, Agriculture, Labor, Forestry, and Environment sectors and Government Ministries of PNG.
Attendees included leaders from Agence Française de Développement (AFD), Asian Development Bank (ADB), International Finance Corporation (IFC) of the World Bank Group, International Monetary Fund (IMF), New Zealand’s Ministry of Foreign Affairs and Trade (MFAT), United Nations Development Program (UNDP), United Nations Capital Development Fund (UNCDF), Alliance for Financial Inclusion (AFI), Global Green Growth Institute (GGGI), and commercial banks including Bank South Pacific (BSP), Kina Bank, ANZ PNG, MiBank, and Mama Bank.
Several significant announcements and agreements were made, marking tangible progress towards PNG’s sustainable finance objectives.
AFD committed to supporting the development of key green finance instruments, including the Green Refinancing Facility (GRF) and the Green Guarantee Facility (GGF), aimed at mobilizing capital and de-risking green investments.
An agreement from ADB to inject USD 20 million into the two facilities, in collaboration with AFD, UNCDF, GFC, and BPNG, bolstered the commitment.
These partners will work with local financial institutions to co-develop a pipeline of green and blue loans, forming the backbone of blended green finance and unlocking access to finance for Micro, Small, and Medium-Sized Enterprises (MSMEs) in Papua New Guinea.
Bleitrach emphasized the importance of systemic transformation. "Systemic transformation is needed, from green taxonomies to innovative financial products and mainstreaming climate risk. We look forward to working hand-in-hand with you all to build climate-resilient, low-carbon financial ecosystems across the Pacific."
The Department of Treasury reaffirmed its commitment to co-develop sustainable finance solutions in partnership with BPNG and GFC, tailored to align with PNG’s National Development Priorities.
The Minister for Energy, Hon. Thomas Opa, pledged to mobilize capital for renewable energy projects through GFC’s platform, underlining the critical role of green finance in the country's energy transition.
The Ministry of Energy, BPNG, GFC, and GGGI also confirmed a collaboration to accelerate renewable energy projects. Already, nearly 20 RE initiatives are progressing, alongside efforts to develop carbon credit mechanisms and green bonds, reinforcing PNG’s commitment to sustainable energy development.
Highlighting AFD’s broader mission, Bleitrach said: "Greening the Pacific financial systems requires systemic and transformative programs to address altogether the development of green finance products, regulations, risk management, capacity building and regional cooperation."
She detailed AFD’s climate finance achievements, noting that it had more than doubled its climate finance from €3 billion in 2015 to €7.3 billion in 2024, including one-third for adaptation, and doubled biodiversity financing to reach 1 billion euros in 2023.
“In the meantime, we have scaled up our support to greening the financial system. Between 2015 and 2022, AFD committed more than 5.5bn€ to pursue this ambition, with successful examples for the Caribbean Financial System and the Indian Financial System.
“Our goal is to support financial regulators and supervisors (central banks, ministries of finance and capital market authorities) to scale-up sustainable finance at 3 different levels:
“At strategic and regulatory level, the objective is to increase market transparency on green finance, notably through green finance roadmaps, national green taxonomies and standards of green/sustainable bond issuance.
“At portfolio level, we need to drive assets allocation towards low carbon and resilient investments through the development of green financial products (savings, loans, insurance, etc.), green financial incentives (grant, guarantee, etc.), and access to international green financing (green climate funds; etc.)
“At operational level, the most significant step is to incorporate physical and transition related financial risks into supervisory practice, as well as establish post-disaster financing schemes.”
She added: “The mainstreaming of climate action within commercial banks and public development financial institutions is a long journey, and we are glad to embark on it with you all.
“We have made significant progress already as the Greening Pacific Financial System (GPFS) project was launched exactly a year ago today.
“We will continue the work alongside New Zealand, GGGI and the Bank of PNG to support the implementation of concrete solutions to mainstream finance towards green and blue objectives in PNG and in the Pacific region.”
Launched a year ago by AFD, GGGI, and the Bank of PNG, the GPFS project continues to support the mainstreaming of green and blue finance objectives in PNG and across the Pacific.
It aims to strengthen the capacity of Pacific Central Banks and Public Development Banks (PDBs) to better manage climate risks, mobilize private sector financing, and improve regional cooperation.
"The Green Finance Summit is a historical step in this direction," Bleitrach stated.
"It will foster cooperation among critical stakeholders, central banks, investors, commercial banks, insurers, export credit agencies, private companies, and many international organizations."
The Summit also showcased partnerships with the Fiji Development Bank (FDB) through a portfolio guarantee targeting green and blue development activities, close cooperation with Banque Calédonienne d'Investissement (BCI) in New Caledonia, and SOCREDO in French Polynesia, demonstrating the growing momentum for green finance across the Pacific region.
Bleitrach affirmed AFD’s ongoing commitment and said, "We hope we can humbly help PNG and the Pacific join the global coalitions as we have so much to learn from each other.
“I very much value your participation in this global movement and am looking forward to the fruitful discussions of this first Green Finance Summit for the benefit of the people in PNG."
Genia: Summit an ‘Important Milestone’
BPNG Governor Elizabeth Genia in her opening remarks, highlighted the importance of the event, calling it “an important milestone” as it coincides with the first anniversary of the country’s Green Finance Centre, established in March 2024.
"In just twelve months, we have implemented the Inclusive Green Finance Policy, developed PNG’s first Green Taxonomy, and successfully piloted green finance projects, demonstrating real-world impact," Governor Genia said.
She emphasized that while these achievements mark a solid foundation, the real task now lies in scaling up the country's green finance initiatives.
Governor Genia underscored the urgent threat climate change poses to PNG, citing rising sea levels, extreme weather, and environmental degradation as direct threats to the nation’s communities and economic stability.
However, she said this crisis also presents unique opportunities. "Green Finance allows us to build resilience, create jobs, and unlock new growth opportunities for our economy."
Mobilising Private Sector Investment
Governor Genia pointed out that 90% of green finance investments will need to come from the private sector, making the role of banks, insurers, and investors critical.
She praised the government's efforts to create an "enabling environment" through targeted policy reforms and strategic partnerships, aligning PNG’s actions with global frameworks like the Paris Agreement and the UN Sustainable Development Goals.
The summit also saw the launch of two new initiatives:
- The Green Refinancing Facility (GRF): Designed to reduce financial risks associated with green projects, making them more attractive and accessible to investors.
- The Green Guarantee Facility (GGF): Aimed at providing essential financial backing to unlock funding for sustainable and climate-resilient initiatives.
Governor Genia also announced that new targeted loan products, including Green and Blue Loans, would soon be available, focusing particularly on SMEs, agriculture, sustainable fisheries, biodiversity conservation, and women-centered enterprises.
"These practical solutions will enable banks, businesses, and communities to direct capital towards impactful climate-resilient and sustainable projects," she said.
For financial instruments, BPNG is pushing forward a broader agenda to strengthen the green finance ecosystem. This includes:
- Launching Green Taxonomy V2.0 to standardize classification and reporting,
- Establishing Environmental, Social, and Governance (ESG) Guidelines,
- Developing thematic bond frameworks, and
- Integrating sustainability principles into PNG’s financial markets regulation and supervision systems.
Governor Genia called on the financial and business sectors to lead by example, saying Green Finance in PNG needs “champions, leaders willing to innovate, drive change, and inspire others.”
She also spoke of successes from local pilot projects, saying that PNG has the potential to be a regional leader in Green Finance by collaborating actively with partners such as the SEACEN Centre, AFD, IFC, ADB, UNCDF, and the Global Green Growth Institute (GGGI).
"We have the framework, the partnerships, and the momentum. Now, we need commitment and decisive action. This is our opportunity, our moment to lead."
