SBP releases draft National Green Taxonomy for public consultation

February 04, 2025 (MLN): The State Bank of Pakistan (SBP) has released the draft of the National Green Taxonomy for public consultation as part of its efforts to promote green finance.

The draft has been developed in collaboration with the Ministry of Climate Change & Environmental Coordination (MoCC&EC) with technical assistance from the World Bank.

The National Green Taxonomy provides clear definitions of green projects and activities enabling policymakers, banks financial institutions, and investors to increase capital flows to the sectors for climate risk mitigation and adaptation.

The taxonomy will provide clarity to financial markets about green projects and activities, increasing transparency in green investments and financial products, according to the press release issued today.

Additionally, it will help mitigate climate-related financial risks and enable the financial sector to direct capital flows toward projects or activities that align with 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 to SBP's official website for public consultation.

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 SBP encourages all the stakeholders including the environment professionals banks and the 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.

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