As part of its efforts to promote green finance, the State Bank of Pakistan (SBP) rolled out the draft National Green Taxonomy for public consultation that has been developed in collaboration with Ministry of Climate Change & Environmental Coordination with technical assistance from the World Bank.
The National Green Taxonomy provides clear definitions of green projects and activities enabling the policy makers, banks and financial institutions and investors to increase capital flows to the sectors for climate risk mitigation and adaptation.
The taxonomy will also provide clarity to financial markets about the green projects and activities, increase transparency in green investments and financial products, mitigate climate-related financial risks, and help the financial sector direct capital flows to projects or activities that will meet 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 on SBP official website for public consultation. The consultation period will be open from February 04-18, 2025.
The SBP encourages all the stakeholders including the environment professionals and banks and public at large to share their valuable feedback on the draft taxonomy enabling it to issue and rollout the finalized taxonomy as per plan.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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Jurisdiction: Pakistan