The French Development Agency (AFD) Financial Systems Division visited PNG for a week to support the Inclusive Green Finance Project (IGFP). This visit follows AFD’s Greening the Pacific Financial Systems Program (GPFS) € 6 million grant agreement, signed between AFD and GGGI in March 2024. Under this program, AFD has allocated € 2.8 million to support PNG’s IGFP, with the Green Finance Centre (GFC) overseeing its implementation under the Bank of Papua New Guinea (BPNG).
The visit runs from 31 August to 14 September and also includes Fiji. The group is led by AFD’s Financial Systems Division Representative, Mr. Damien Serra, and includes AFD PNG Country Representative Mr. Benoit Chassatte and Ms. Marion Reinosa-Dinh, French technical assistant to the Ministry of Planning (DNPM). Its key objectives were to validate and close the inception phase of the GPFS program in PNG, and its key deliverables.
The GPFS program in PNG is implemented by the Global Green Growth Institute (GGGI) in collaboration with the Bank of Papua New Guinea (BPNG), the Centre for Excellence in Financial Inclusion (CEFI) and the Climate Change & Development Authority (CCDA). It aims to improve the capacity of financial institutions in the Pacific to manage climate risks, mobilise greater capital to meet the costs of climate change and develop transformative financial initiatives in the region.
As part of the field visit, the team met with key stakeholders from the public and private sectors who are playing an integral part in the initiative. These included:
- Bank of Papua New Guinea
- The Centre for Excellence in Financial Inclusion
- The BSP Financial Group
- ANZ Bank
- Kina Bank
- National Development Bank
- Women’s Micro Bank
- Nationwide Microbank
- Kumul Petroleum Holdings Ltd.
- Department of Treasury
- Climate Change & Development Authority
- New Zealand Ministry of Foreign Affairs & Trade
- Australian Department of Foreign Affairs & Trade
- International Finance Corporation (PNG Office)
There was meaningful dialogue with the stakeholders visited, giving great insights on green finance. All the information gathered here will help the team in accomplishing its objectives.
The visit concluded with a cocktail attended by key stakeholders of the IGFP initiative and was graced by the French Ambassador His Excellency Guillaume Lemoine.
Ambassador Lemoine commended the collaboration between BPNG, GGGI and AFD in the move towards greening PNG’s financial systems and acknowledged Mr. Serra’s visit, further emphasising the importance of the initiative.
“We welcome AFD’s financial expert Damien Serra to PNG to finalise the implementation action plan of the Green Finance Centre to materialise the commitment taken by our two leaders President Macron and Prime Minister Marape. Greening financial systems is crucial in the fight against climate change, and I am proud that France is helping the Government of PNG to tackle this ambitious task, hence we wish the team involved the best”, said Ambassador Lemoine.
AFD Country representative Mr. Benoit Chassatte also spoke at the function, giving an overview of AFD’s recent start and current operations in PNG.
“AFD is operating in 160 countries, but we are probably the newest development partner in PNG! Thanks to the French President’s visit to PNG last year, we have funds now and can develop a few activities by starting small but hopefully in a sustainable way to develop a long-term partnership with PNG”, said Mr. Chassatte.
AFD Financial Systems Division Representative Mr Damien Serra also addressed the audience. He praised the visit and the willingness shown by all stakeholders for the initiative.
“The mission has been an excellent opportunity to take note of all the progress made by BPNG with support from GGGI, operationalising the Green Finance Centre. We are at the very beginning of a long journey in the transition of the banking industry towards more sustainable practices and I am pleased to see the strong willingness from everyone we met to contribute actively to this transition”, said Mr. Serra.
AFD’s grant support will significantly help in the roll-out of the IGFP’s Implementation Roadmap and other green finance initiatives not only in PNG but across the Pacific. From here the AFD team will continue its mission in Fiji to meet with stakeholder for similar engagements.
