Kathmandu, Jun 23
A
new report by the IFC-facilitated Sustainable Banking Network (SBN) shows Nepal, Bangladesh and Mongolia have identified
green finance as a top priority for sustainably developing their financial
sectors.
The
report - “Necessary Ambition: How Low-Income Countries Are Adopting Sustainable
Finance to Address Poverty, Climate Change, and Other Urgent Challenges”- says
these countries face immediate and significant impacts from climate
change, pollution, biodiversity loss, and social inequality that require urgent
responses.
In
the wake of the challenges, promoting green finance, such as green bonds and
green loans, is particularly a focus in Bangladesh and Mongolia, read the
report. The two countries, along with Nepal, are also working on developing
national sustainable finance roadmaps as part of efforts to reduce market risk
and incentivize green finance flows.
“At
a time when low-income countries across Asia and the Pacific are being
adversely impacted by COVID-19, it’s all the more vital for countries to
embrace sustainable financial development to build resilience for the future,”
said Nena Stoiljkovic, IFC’s Vice President for Asia and Pacific. “The report
highlights these Asian countries are resolute in their commitment to promoting
sustainable finance and going green in planning for the future.”
CEO
and a Board Member of the Mongolian Sustainable Finance Bankers Association and
Co-chair of the SBN IDA Task Force, Naidalaa Badrakh says there is positive
evidence of changes in the way banks are managing environmental and social
risks, compared to five years ago.
In
addition to green finance, the report shows the three Asian countries are also
exploring ways to expand sustainable finance to other areas such as financing
for small and medium sized enterprises and agriculture.
Dev
Kumar Dhakal, Executive Director of the Nepal Rastra Bank, said "The
country should develop and implement sustainable finance related policies for a
better and safer financial system. These policies should not be detrimental to
development activities, rather should guide the initiatives taken".
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