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CBS hosts virtual training on Inclusive Green Finance in collaboration with AFI | 15 September 2020

The Central Bank of Seychelles (CBS) is moving forward with its endeavour to advance the concept of Inclusive Green Finance (IGF) in Seychelles, particularly to elaborate on the role of financial regulators with regard to developing IGF policies.

This was done through a virtual training held recently – a training that was co-hosted by CBS and the Alliance of Financial Inclusion (AFI) – and attended by around 30 CBS staff from different functions of the institution.

This initiative will support the work currently being done on the Seychelles’ sustainable development agenda whereby mitigation and adaptation

measures to environmental issues such as climate change are already being done.

In her opening remarks, the second deputy Governor of CBS, Jenifer Sullivan, highlighted the challenges that climate change poses to small island developing states like Seychelles, especially in the context of the effects of the Covid-19 global pandemic which has highlighted the importance of early intervention, linking those challenges with the role of CBS as a financial regulator.

“In discharging our responsibilities towards financial stability, we are in a strategic position to support the development of green finance models, thereby aligning finance with sustainable development. Green Finance is a rapidly evolving policy area that is relatively new to the Central Bank and as such we are cognisant of the challenges that we may face in the implementation of this initiative. Accordingly, this training is opportune as it will provide participants with the appropriate knowledge which will lead to the formulation of informed policy decisions,” said Ms Sullivan.

Welcoming the participants on behalf of AFI, the deputy executive director of AFI, Norbert Mumba, congratulated CBS on the initiative to advance inclusive green finance in the country and for the collaboration with AFI in this endeavour.

Mr Mumba noted that “the discourse of IGF has taken a huge leap in recent years around the world” and commended CBS for taking this opportunity to build the capacity of the institution, noting that, “both slow and fast onset climate events hamper economic development and impacts the most vulnerable the hardest. At the micro-level, those with limited coping capacities suffer the most impacts of these climate events”.

Besides the AFI head of IGF and other facilitators who shared their knowledge and expertise on how climate change can impact on financial stability, as well as the role and mandate of financial regulators in developing green finance policies, the training also saw a presentation by George Uzice, a climate change negotiator from the Ministry of Environment, Energy and Climate Change.

Mr Uzice provided an overview of the effects of climate change on Seychelles, the current climate policies and processes in place – including the blue economy initiatives as well as environmental challenges that should be taken into account when discussing green finance policies.

The training participants were also able to learn from the experiences of the Reserve Bank of Fiji and Central Bank of Sri Lanka as two countries that are already implementing green finance policies. As island nations, the sharing of knowledge based on the experiences of these two countries were valuable, as they share similar vulnerabilities to Seychelles.

The CBS will now be applying the knowledge gained from the training to develop an action plan that will chart the next steps in advancing the IGF agenda in Seychelles. This action plan is one that will involve the participation of other stakeholders as close collaboration towards a common goal is key to progress.

To note that the CBS became a member of AFI in 2014 and has since then collaborated on various financial inclusion policy areas.

 

Press release from the CBS

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