Promoting Inclusive Green Finance Initiative and Policies

Climate change has already imposed a high cost on low-income and vulnerable populations in developing and emerging economies. However, research shows that financial inclusion is one way to build individual and collective resilience to the effects of climate change.

Around the world, Inclusive Green Finance (IGF) is gaining acceptance as an approach to addressing climate change, especially in developing countries. At AFI, the 4P Framework of Promotion, Provision, Protection and Prevention is being developed as a policy area by the IGF Working Group in consultation with financial regulators in the AFI network.

The purpose of the framework is to provide an intuitive way for financial regulators to consider the full range of policy actions for IGF. The first “P”, Promotion, which is the focus of this report, includes policies and initiatives that prepare and stimulate the private sector to offer financial services to qualified beneficiaries for green projects or related climate action.

The Inclusive Green Finance workstream is part of the International Climate Initiative (IKI), supported by the German Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMU), based on a decision by the German Bundestag.