Hosting Public Discussion on Green Finance Policy Paper by PMCG Research
On July 23, PMCG Research hosted a presentation and public discussion of its policy paper entitled “Taking Stock of Greening in the Georgian Financial System.”
The paper analyzes the current state of green finance in Georgia, identifying and addressing gaps and opportunities therein.
As well as outlining the key players in green finance in Georgia, namely international financial institutions (IFIs), commercial banks, and the National Bank of Georgia (NBG), it also evaluates the present role of green finance instruments (for example, green bonds and debt-for-environment swaps) in Georgia, and the green taxonomies already being applied in the country.
At the event, co-authors Nana Kajaia (Researcher, PMCG) and Levan Tsulaia (Energy Advisor, GIZ) spelled out the paper’s main findings and results, as well as its recommendations to embrace the concept of green finance further. In particular, these recommendations include creating a regulatory base with a clear definition of “greenwashing,” devising a new tool for the NBG Taxonomy, and rewarding the banks having the greenest portfolios.
Diverse Panel Debate the Future of Green Finance in Georgia
Following the presentation came a panel discussion moderated by one of the paper’s peer reviewers, Sneha Yadav (Head of ESG and Responsible Investing, Astant Global Management).
Partaking in the debate were key green finance stakeholders including representatives of the NBG, personnel from the green finance divisions of Georgia’s leading banks, figures from international bodies including USAID and the EBRD, as well as beneficiaries and other researchers.
Specifically, they discussed in detail some of the main issues raised in the policy paper such as green finance instruments, the NBG’s adoption of a green taxonomy, and what the future may hold for green finance in Georgia.
“Georgia is making significant strides in reducing greenhouse gas emissions and enhancing climate resilience within the financial sector, including policies aimed at safeguarding the financial sector and implementing measures to assess and manage climate-related financial risks,” stated Yadav.
Going into greater depth, Yadav added: “The National Bank of Georgia, with the support of the European Investment Bank (EIB), has developed a climate risk scenario tool, adapted from the Network for Greening the Financial System (NGFS) scenarios, and will undertake stress testing to inform policy and regulatory measures. These are pivotal steps to understand climate change risks and opportunities, and prepare for national and international supervisory mechanisms.”
