News Items

Already this year in October, the State Bank of Pakistan adopted Green Banking Guidelines, which urge all national commercial banks to reduce adverse effects of their institution on the environment and the society. The guidelines were developed in cooperation with the bilateral GIZ project “Renewable Energy and Energy Efficiency (REEE)” which is implemented on behalf of the German Ministry for Economic Cooperation and Development (BMZ) and will be applied within a first pilot phase by end of 2018. Afterwards they will become binding rules as part of the national banking regulation. Another step into the right direction.

A study tour, conducted now in November 2017, has brought together the Pakistani banking community with their peers in Germany to engage in an exchange on successful green banking initiatives. One key question that arises when implementing the guidelines was: “How to design financing mechanisms so that investors finance renewable energy and energy efficiency-projects?”. Participants of the study tour included representatives of the State Bank of Pakistan and Pakistani private banks as well as GIZ-employees of the REEE-project.

In order to get to know approaches of German banks in the field of “Green Banking”, the sectoral department of GIZ arranged several appointments: the German Central Bank, the European Central Bank, the KfW, the Deutsche Bank, the DZ Bank and the GLS-Bank opened their doors for the Pakistani delegation. Through the various specialization of these financial institutions, representatives were able to gain a thorough understanding of existing “Green Banking” approaches. 

Additionally, the BMZ-commissioned Climate Finance Readiness Programme (CF Ready) organized a meeting between the Pakistani banks and the Green Climate Fund (GCF), represented by Ms. Jiwoo Choi (Deputy Director of the Private Sector Facility). The meeting took place at the same time as COP23 and was a final highlight of the study tour. As part of an interactive discussion, the Pakistani bankers and the GCF determined in what way there is a possibility to cooperate in order to introduce new instruments for climate-friendly investments. The lively discussion facilitated a positive result of the meeting: The mutual interest to cooperate will be further discussed at another meeting in Islamabad. In addition, several banks have expressed their interest towards the State Bank to seek accreditation with the GCF. CF Ready will support this process in the future within the scope of the GCF Readiness Programme.

Focal point: Dennis Mutschler

Author: Carolin Gunesch & Felix Fallasch 


gizlogo unternehmen de rgb 300



SQF logo final 01


Govt of punjab

State emblem of Pakistan.svg