The Royal Monetary Authority of Bhutan (RMA Bhutan) is driving the development of its country’s roadmap on green financing, by creating tools and criteria, identifying key stakeholders and establishing monitoring, supervision and assessment structures for the country’s financial sector.

RMA Bhutan’s Governor Dasho Penjore emphasized that the roadmap will have strong Inclusive Green Finance (IGF) elements and that the RMA will provide all necessary resources to develop it this year.

Underscoring the importance of the roadmap, he went on to say that in the modern era, everyone must play their part in ensuring environmental protection and sustainability.

Governor Dasho Penjore underlined that the roadmap must be easily understood across all levels, from governors to financiers and even borrowers, emphasizing that banks can contribute significantly to green initiatives

“When it comes to green finance, our banks should have very strong schemes and products to understand green activities, how to finance them and also how to be resilient in terms of the sustainability of the finance and the sustainability of natural calamities,” he told participants of the first ever joint learning program (JLP) on IGF co-hosted by RMA Bhutan and AFI from 20 to 22 January 2020 in Thimphu.

Dasho Penjore added that he would like Bhutan to be a successful case study and champion on this topic which can further share knowledge with the rest of the AFI members

Over 70 participants comprising RMA Bhutan staff, local financial and non-financial institutions and government agencies attended the JLP on inclusive green finance co-hosted by RMA Bhutan and AFI. The JLP was also attended by international experts from Bangladesh Bank, National Bank of Cambodia, Nepal Rastra Bank, Central Bank of Sri Lanka and Bank of Thailand who generously shared their insight and experience in this emerging policy area. The Central Bank of Seychelles was also present throughout the JLP as an observer.

AFI’s Head of IGF Johanna Nyman congratulated RMA Bhutan for starting the dialogue for potential future collaboration.

“The first step is to speak to each other and identify what the different roles and responsibilities are in this coordinated response,” said Nyman, underlining the need for a structured and holistic approach to green financing and coordinated climate action.

As a network that is focused on policies for the most vulnerable people, AFI constantly has its eye on long-term perspectives.

“This is a new kind of JLP for AFI and we are delighted that RMA Bhutan has stepped up to become pioneers of the IGF agenda,” said Nyman. “This is the start of a journey on inclusive green finance here in Bhutan and from the side of AFI, we are here to support that journey.”

AFI’s IGF workstream is part of the International Climate Initiative (IKI), which is supported by the German Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMU) based on a decision of the German Bundestag.