SBP Releases Draft National Green Taxonomy for Public Feedback
KARACHI: The State Bank of Pakistan (SBP) has issued the draft of the National Green Taxonomy, developed with the support of the World Bank. This is part of the SBP’s efforts to boost green finance and encourage investments that help tackle climate change.
The SBP said that the draft of the taxonomy has been shared for public consultation as part of its efforts to make green finance more accessible and transparent.
The National Green Taxonomy provides clear definitions for green projects and activities, according to an SBP circular. It aims to guide policymakers, banks, investors, and financial institutions in directing investments toward climate-friendly projects focused on risk mitigation and adaptation to climate change.
The draft aims to bring green investments and financial products into greater transparency. This will also assist in reducing climate-related financial risks and ensure capital flows towards projects that support Pakistan’s environmental and climate goals.
The SBP has published the draft on its official website in order. to ensure that diverse kinds of feedback come in. In this regard, the bank calls upon all relevant stakeholders, from environmental professionals and banks to other members of society, to put forth their opinion. within the next fortnight so that the bank can finalize the National Green Taxonomy as proposed.
