Based in Seoul, the Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as "green growth", which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change.

GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to countries’ development priorities. The organization also focuses on knowledge development and management activities which build a strong theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers; as well as building the conditions for public and private green infrastructure investments. 

The Governor of the Bank of Papua New Guinea (BPNG) requested GGGI to support its mission of improving access to credit for individuals and entities engaged in inclusive and green growth activities. PNG lacks an official taxonomy to guide government agencies, financial institutions, and other private sector entities on which activities are green. BPNG, Centre for Excellence in Financial Inclusion (CEFI), GGGI, and the New Zealand Ministry of Foreign Affairs and Trade (MFAT) developed an Integrated Green Finance Policy (IGFP) to define green finance in the PNG context. The project is establishing a Green Finance Centre (GFC) to deliver the IGFP and transform PNG’s financial sector into one that is sustainable, resilient and inclusive.

About the Green Finance Centre

 (1) Mission and structure

• Mission. The GFC’s mission is to lead the transformation of PNG’s financial sector into one that is sustainable, resilient, and inclusive.
• Structure
• The GFC will, for the first five years (or until otherwise determined by its Steering Committee), function as a new division of CEFI to (i) minimize costs, (ii) leverage CEFI’s existing relationships with the central bank and local financial institutions, and (iii) benefit from CEFI’s internal processes (accounting, HR, procurement, communications, etc.).
• The GFC will adopt the current management structure of the IGFP project, where overall guidance is provided by a Steering Committee and technical inputs are sought from Technical Working Groups. The only change will be that the GFC will assume the role of a secretariat instead of GGGI.
• To ensure sound internal processes in line with global best practices, the GFC – as a division within CEFI – will follow CEFI’s processes for financial reporting, HR, procurement, legal, and other operational matters. CEFI has been an implementing partner of various multilateral organizations and bilateral aid agencies since 2013 and its staff are well-versed with donors’ reporting requirements, particularly with respect to the administration of funds.
• CEFI will manage a separate account on GFC’s behalf to ensure contributions from donors and local financial institutions are used for GFC’s expenses only.
• GGGI will bear overall responsibility for the successful establishment and operationalization of GFC and oversee all aspects of the project until its completion.

(2) Programs and activities

• The GFC, to achieve its mission, will undertake three areas of work.
• Area 1: Revising and updating the taxonomy. The taxonomy is a living document that must continuously reflect the government’s climate change, conservation, and sustainable development targets as well as the country’s evolving socioeconomic landscape.

As the GFC’s Steering Committee and Technical Working Groups are, by design, composed of representative entities from public and private sectors – particularly those in the financial industry – it is the optimal independent body to organize technical consultations and facilitate revisions/updates to the taxonomy.

• Area 2: Coordinating the execution of the implementation roadmap. One of the outputs from LECRD program in Year 1 (2021-22) is an implementation roadmap. The roadmap lists various programs/activities on matters ranging from governance and standards to disclosure to be undertaken by financial regulators and local financial institutions.

The GFC will coordinate the timely and effective execution of the implementation roadmap by providing technical input and resources, among others.

• Area 3: Leading awareness-raising campaigns and dissemination of knowledge products. The field of green finance is new. Countries that finalized their taxonomies have done so only in the past two years, and most financial institutions are still trying to understand what the taxonomy is, why it is important, and how best to integrate its requirements into their operations. Effective communication, therefore, is critical to address this information gap.

The GFC’s role offers it an excellent vantage point to observe all major developments in the green finance space, both within PNG and internationally, and it is therefore well-positioned to conduct awareness-raising campaigns and publish knowledge products.

 (3) Key deliverables in 2022-23

• In 2022-23, GGGI – together with the Director of GFC and CEFI – will undertake preparatory activities for the successful establishment of the GFC, which includes:
• GFC’s governing documents. Finalizing the mission, areas of work, structure, operations manual, and KPIs of the GFC, and obtaining approval/endorsement from stakeholders as required.
• Staffing of the GFC. Preparing job descriptions; overseeing the hiring and on-boarding of GFC staff.
• Building an effective communications platform. Developing a strong online presence (e.g. websites, Facebook, LinkedIn, etc.) and organizing a launching ceremony as well as several conferences.