Finance policy for climate change eyed

**Bank of Papua New Guinea assistant governor Ellison Pidik. – Nationalpic by JOEL HAMARI**

AN Inclusive Green Finance Policy will be developed to assist vulnerable communities impacted by climate change, Bank of Papua New Guinea (BPNG) assistant governor Ellison Pidik says.
Pidik made this remark during the signing of a memorandum of understanding (MoU) between Global Green Growth Institute (GGGI) and Centre for Excellence in Financial Inclusion (Cefi) on inclusive green finance initiatives in Port Moresby yesterday.He said all financial institutions would be required to develop products to support vulnerable communities.
Pidik said once launched, hopefully, by the end of the year, it would enable financial institutions to participate in green finance.

**Financial institutions like BSP Financial Group and Kina Bank will be part of the Inclusive Green Finance Policy. – Nationalpic by KENNEDY BANI**

“You are looking at the rural areas and mostly islands, who are vulnerable, we will work with the financial institutions for them to develop financial products, that promote green finance,” he said.
GGGI will help to develop the policy framework.
“Climate change is a security and development issue facing PNG, this partnership on green finance policy are steps in helping financial regulations, banks and business houses to contribute to PNG’s low emissions climate resilient development.

**Participants during a Centre for Excellence in Financial Inclusion business development skills training in Kavieng last year. – Picture supplied**

“The convergence of financial inclusion and climate change policy outcomes in developing countries are increasingly evident, affordable financial services play vital roles in enabling the vulnerable people to cope with financial losses which result from the impact of climate change and build resilient sustainable livelihoods.”
Pidik said BPNG expected the policy to benefit people in the long run where they could look at alternative income generation activities when faced with climate problems.
He said they expected financial institutions, commercial banks, micro banks, and finance companies, as well as savings and loans societies to be part of this initiative.

Centre for Excellence in Financial Inclusion (Cefi) executive director Saliya Ranasinghe (fourth from left), Bank of Papua New Guinea assistant governor Ellison Pidik (fifth from left), New Zealand Acting High Commissioner Nathan Ross (sixth from left) and with stakeholders after the signing ceremony in Port Moresby yesterday. – Nationalpic by JOEL HAMARI

“Many studies and evidence have shown financial inclusion as one of the best ways to build individual and collective resilience against the effects of climate chang,” he said.
“We are grateful to the New Zealand government and the Global Green Growth Institute with to progress this initiative and will further implement the work that is initiated under this important policy.”
GGGI deputy director general ambassador Hyoeun Jenny said Papua New Guinea, as a founding member of GGGI, had always been supportive of green and sustainable economic growth in developing countries especially the Pacific region.