IGF World Environment Day 2021 Member Sliders

Highlights from AFI member institutions on inclusive green finance policies

Bank of Ghana

Bank of Ghana (BOG) supported the development and initial implementation of the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) to increase the total amount of credit available to the agricultural and agribusiness sectors.

Bank of Ghana

BOG also established the Sustainable Finance Principles to assist banks to respond to emerging issues, including environmental and climate change.

Reserve Bank of Fiji

The Reserve Bank of Fiji has issued a renewable energy loan ratio requirement equivalent to two percent of deposits and similar liabilities.

Reserve Bank of Fiji

Fiji's Natural Disaster Rehabilitation Facility was also established as a climate resilience and adaptation program to replace damaged inventory.

Nepal Rastra Bank

Nepal Rastra Bank (NRB) has directed all banks to allocate 10 percent of their portfolio for green projects and offered subsidized loans for green technologies and post-disaster recovery through its refinancing facilities.

Nepal Rastra Bank

NRB also introduced Environmental Risk Management Guideline and Environmental Due Diligence Checklists to regulated financial institutions.

Central Bank of Egypt

The Central Bank of Egypt (CBE) sent its staff and representatives from financial institutions to an international course to learn about sustainable finance and embedding environmental, social and corporate governance in lending.

Central Bank of Egypt

CBE also launched a Natural Gas Initiative by establishing a fund to support transition to use of natural gas in the transport sector and offered discounted rates to allow bakeries to transition into the use of natural gas.

Banco Central del Paraguay

Banco Central del Paraguay developed a guide for the Management of Environmental and Social Risks that encourages including non-financial risk in credit decisions.

Banco Central del Paraguay

The central bank also added drought to its list of economic stressors in its recent stress test.

Policy adjustments were then made to ensure the stability of the financial system, taking into account the economy’s sensitivity to these risks.

For more insights into Inclusive Green Finance in the AFI Network, check out: Inclusive Green Finance: A Survey of the Policy Landscape (Second Edition)