Africazine:
Papua New Guinea is taking significant strides towards sustainable finance with a new partnership aimed at enhancing its green finance ecosystem.
On May 27, 2026, a Letter of Intent was signed between the Agence Française de Développement (AFD), the Bank of Papua New Guinea (BPNG), and the Global Green Growth Institute (GGGI). This agreement formalizes AFD’s proposed investment of EUR 15 million (app. PGK 75M) into the country’s Green Finance Facilities, supporting the implementation of an Inclusive Green Finance Policy.
New Partnership to Boost Green Finance in PNG
The signing of the Letter of Intent marks a crucial step in mobilizing climate finance in Papua New Guinea. This collaboration aims to expand access to sustainable financing for businesses and communities throughout the nation. The partners will focus on developing a pipeline of green loans that align with the country’s Inclusive Green Finance Taxonomy.
Under this agreement, the Bank of Papua New Guinea will provide ongoing support to the Green Finance Centre, ensuring that necessary government approvals are facilitated. AFD is set to explore additional financing opportunities to complement its investment, while GGGI will offer technical support to enhance the implementation of these facilities.
Papua New Guinea: Key figures on Green Finance Facilities
- EUR 15 million (app. PGK 75M) investment by AFD
- Initial period of two years for the Letter of Intent
Commitment to Climate Resilience and Inclusion
During the Green Finance Summit, Bank of Papua New Guinea Governor Ms. Elizabeth Genia highlighted the urgency of climate action and the need for inclusive green finance. She emphasized that financial inclusion must be central to the agenda, ensuring support for rural communities, SMEs, and women-led enterprises.
Mr. Muhammad Ali Shaikh, GGGI Country Representative, acknowledged the importance of the agreements reached at the Summit, which are built on years of technical work. The partnership aims to support Papua New Guinea’s green growth for the long term.
Next Steps for Green Finance Initiatives
- AFD to pursue opportunities for scaling green finance facilities
- GGGI to provide ongoing technical support
- Bank of PNG to facilitate government approvals as needed
The collaboration between AFD, BPNG, and GGGI represents a strong commitment to advancing green finance and fostering a sustainable future for Papua New Guinea.
