From 3 to 6 November, AFI members from over 20 countries met in Islamabad for a joint learning program (JLP) on Inclusive Green Finance (IGF) policy implementation.

The JLP, hosted by the State Bank of Pakistan (SBP), was an opportunity for AFI members to learn from Pakistan’s practical experience in moving from IGF policy formulation to practical implementation.

Pakistan faces significant climate risks that directly impact its economic stability and financial inclusion trajectory.  SBP has taken proactive steps to address these challenges, including the rollout of Green Banking Guidelines, a National Green Taxonomy, and climate-smart agriculture initiatives.

“Climate change presents both physical and transitional risks that can affect the financial position of borrowers, the balance sheets of financial institutions, and ultimately, financial stability,” said SBP Governor, Jameel Ahmad. “Understanding and managing these risks is therefore an important part of our regulatory and supervisory responsibilities.”

The program featured local stakeholders and regulatory experts from the SBP, the Securities and Exchange Commission of Pakistan (SECP), Reserve Bank of Fiji (RBF), Bangladesh Bank, Bank of Papua New Guinea, Central Bank of Egypt, the V20 Group, SUPARCO and ConcaveAgri.

Participants learned how to implement Green Taxonomies and ensure proportionality in sustainable finance frameworks. They explored the practical and gender-specific barriers to implementing IGF policies in developing economies, and drafted initial policy actions for their own jurisdictions.

Pakistan presented its integrated ecosystem for climate-smart agriculture financing for smallholder farmers, which leverages geospatial data provided by Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO).  

The program also supported the Port Moresby Compact on Inclusive Green Finance, a voluntary, non-binding framework recently launched by AFI and endorsed by members and partners, which aims to move IGF from commitment to implementation.

“As regulators and policymakers, we can’t control climate disasters, but with the help of IGF we can help build financial systems and societies that can withstand, recover from and mitigate climate shocks,” said AFI’s Director of Strategy, Member Engagement and Evaluation, Aban Haq.

“The success of our policies should therefore be measured, not only by the regulations we issue, but by the difference they make in people’s lives,” Haq added.