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.
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.”
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.
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.
Source Fiji Sun