Energy Minister Thomas Opa Eyes Green Guarantee Facility to Boost Renewable Energy Investments in Papua New Guinea
Energy Minister Thomas Opa has unveiled plans to leverage the Green Guarantee Facility (GFC) as a key platform for raising capital to drive renewable energy investments in Papua New Guinea. Speaking at a recent event, Opa emphasized the Ministry of Energy’s support for a landmark agreement between the Bank of Papua New Guinea, the GFC, and the Global Green Growth Institute (GGGI). This collaboration aims to fast-track renewable energy projects across the nation, aligning with global efforts to combat climate change and promote sustainable development.
Currently, nearly 20 renewable energy initiatives are already underway, with a strong focus on integrating carbon credit mechanisms and green bonds into the country’s energy landscape. “We must create a bridge between energy and green finance – a clear pathway for real investment to flow,” Opa stated. He stressed the need for a policy-based investment framework and enhanced institutional capacity within the Department of Energy to ensure these projects achieve their full potential.
Green Finance Summit 2025 to Catalyze Sustainable Investments
The Green Finance Summit 2025 is set to play a pivotal role in accelerating investments and fostering partnerships for a sustainable future in Papua New Guinea. The summit will explore innovative financial instruments and strategies to attract both domestic and international funding for green initiatives. Among the tools being developed are the Green Refinancing Facility (GRF) and the Green Guarantee Facility (GGF), supported by the Agence Française de Développement (AFD). These instruments aim to mobilize capital and reduce risks associated with green investments, making them more attractive to stakeholders.
The commitment to advancing green finance was further solidified by an agreement with the Asian Development Bank (ADB), which pledged US$20 million (approximately K81.3 million) to support both facilities. This funding injection underscores the growing momentum behind Papua New Guinea’s transition to a low-carbon economy.
IMF Backs PNG’s Climate Resilience Efforts Through Resilience and Sustainability Facility
In another significant development, the International Monetary Fund (IMF) announced Papua New Guinea’s participation in its Resilience and Sustainability Facility (RSF). Under this initiative, PNG will receive US$265 million (approximately K1.2 billion) to support two reform pillars closely aligned with the GFC’s mandate: climate action and disaster risk management. The funding is expected to bolster the country’s ability to address environmental challenges while promoting long-term economic stability.
Chief Secretary Ivan Pomaleu lauded the rapid progress achieved by the GFC, noting that its accomplishments in under 12 months surpassed what other institutions had taken decades to achieve. “What the GFC has done in such a short time is truly remarkable,” Pomaleu said. “Let’s all work together to deliver a future that is resilient, inclusive, and sustainable for all Papua New Guineans.”
Pomaleu expressed his hope that the GFC would become a cornerstone of Papua New Guinea’s financial future and position the country as a regional leader in green finance. His remarks highlighted the critical role of collective action in ensuring the success of these transformative initiatives, paving the way for a brighter and more sustainable future for the nation.
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