In focus – selected green finance projects

Housing finance in Armenia

In Armenia’s urban economy, buildings are one of the major sources of greenhouse gas emissions. Thanks to the “Im Taniq” housing finance programme activities, the construction of energy-efficient districts has increased, which also contributes to the demand for financing of energy-efficient mortgage. AFC-FSD implemented the programme in cooperation with the National Mortgage Company and the German-Armenian Fund (2021-2022). The EUR 20 million financing was provided within the framework of the German-Armenian intergovernmental cooperation through the KfW Development Bank.

14 commercial banks and credit organizations participated in the programme. Loans at affordable interest rates were provided to 643 borrowers for the purchase and renovation of apartments and construction of family houses. Nearly 40% of the loan amount was allocated to energy efficient housing investments (purchase or renovation), which was one of the most important components of the programme.

During the programme an energy efficiency standard for newly constructed buildings was established and an innovative web-based tool was developed (accessible online or via the QR code) allowing for the assessment of energy efficient projects and measuring of the climate impact of the investments. Apart from that, 351 bank employees and National Mortgage Company staff were trained in 39 various capacity building events, including assessment of energy efficient housing projects.

Inclusive green finance policy for Papua New Guinea

During 2021 until 2022, on behalf of the Global Green Growth Institute (GGGI), AFC has developed the framework foundations for an inclusive green finance policy (IGFP) for the financial sector of Papua New Guinea, in partnership with the Bank of Papua New Guinea and the Centre for Excellence in Financial Inclusion (CEFI).

The IGFP was designed for investors, lenders, and other financial sector participants to identify, track, monitor, and demonstrate the scope and volume of their green and inclusive financial flows, whether it is in the form of a loan, equity, guarantee, or other financial instrument. The IGFP is supported by a roadmap, which sets out practical action steps necessary to implement an IGFP and taxonomy in Papua New Guinea.

In the process of developing the IGFP, IGFP committee members discussed the key findings of a pilot application of the green finance taxonomy— with strong emphasis on financial inclusion— and provided strategic guidance on its further development. Additionally, various technical working groups were established, with representatives from financial intermediaries, authorities, industrial associations and donors, to steer the further IGFP development at operational level.