KARACHI, Feb 04 (APP): As part of its efforts to promote green finance in the country, the State Bank of Pakistan (SBP), on Tuesday, released the draft National Green Taxonomy for public consultation.
The National Green Taxonomy, developed in collaboration with the Ministry of Climate Change and Environmental Coordination (MoCC&EC) with technical assistance from the World Bank, provides clear definitions of green projects and activities enabling the policy makers, banks and financial institutions and investors to increase capital flows to the sectors for climate risk mitigation and adaptation, said a statement issued here.
The taxonomy will also provide clarity to financial markets about the green projects and activities, increase transparency in green investments and financial products, mitigate climate-related financial risks, and help the financial sector direct capital flows to projects or activities that will meet the country’s environmental and climate objectives.
To ensure that the taxonomy reflects a holistic view of all market players, the draft taxonomy has been uploaded on SBP official website for public consultation, the SBP spokesperson informed, adding that the consultation period will be open from February 04-18, 2025 (two weeks).
For ease of understanding, a set of Frequently Asked Questions (FAQs) is also available alongside the draft document. The feedback may be submitted at green.taxonomy@sbp.org.pk using the Feedback Form provided on the SBP website and could be accessed via the link: https://www.sbp.org.pk/greentaxonomy/PGT.asp
The SBP encouraged all the stakeholders including the environment professionals and banks and public at large to share their valuable feedback on the draft taxonomy enabling it to issue and roll out the finalized taxonomy as per plan.