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Financial Sector Role on Green Economy Important

The financial sector has been urged to play a critical role in allocating resources towards a sustainable and green economy, particularly given the magnitude of investments required to weather future
27 Nov 2018 11:00
Financial Sector Role on Green Economy Important
Governor of the Reserve Bank of Fiji Ariff Ali

The financial sector has been urged to play a critical role in allocating resources towards a sustainable and green economy, particularly given the magnitude of investments required to weather future storms.

The remarks were made by Reserve Bank of Fiji Governor, Ariff Ali, at the Alliance for Financial Inclusion Conference on Smart Policies for Green Financial Inclusion, at the Sheraton Fiji Resort on Denarau yes­terday.

Mr Ali said this was because pub­lic funds were limited and were not sufficient for all our communities to rebuild their livelihoods and ensure protection against impending cli­mate related events.

He said it was gratifying that AFI had initiated this important conver­sation through the organising of this conference.

He said RBF’s initiatives were anchored on Fiji’s Green Growth Framework which had laid the foun­dation for sustainable development in the country while the Financial Sector Development Plan 2016-2025 also recognised the need to support green finance in Fiji.

“The Reserve Bank of Fiji is also committed to working with partners on developing and promoting sus­tainable business models under the Maya Declaration.”

Mr Ali said RBF was currently working with the Sustainable Bank­ing Network to draw up a roadmap towards building a sustainable fi­nancial system in Fiji.

“In Fiji, the concept of green fi­nance is still embryonic and will require further research and con­sultation on products that would be appropriate for a small developing economy like ours,” he said.

“Nevertheless, we have achieved a significant milestone when Fiji became the first emerging market economy in the world to issue a green bond in 2017.

“The issue raised FJD100 million towards financing government in­frastructure projects targeted at cli­mate change mitigation and adapta­tion.”

In an effort to support climate change mitigation, adaptation and resilience in Fiji, the RBF Natural Disaster Rehabilitation Facility has been established to assist businesses and households affected by tropical cyclones, floods and other natural disasters.

Mr Ali said a pioneering initiative undertaken by RBF is the introduc­tion of a bundled micro-insurance product for sugar cane farmers which has now been extended to dairy and rice farmers and now to civil servants.

The conference is being attended by delegates from Armenia, Tanza­nia, Southern Asia and the Pacific Islands.

Feedback: charles.chambers@fijisun.fj

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