Government urges financial entities to embrace green financing

DAR ES SALAAM: THE government has called on financial institutions to explore green financing opportunities to ease the pressure on biodiversity conservation.

The appeal was made by the Deputy Permanent Secretary in the Vice President’s Office, Mr Abdalah Mtawi, during the launch of the Biodiversity Finance Initiative (BIOFIN) in Dar es Salaam, recently.

“Banks and financial institutions can capitalise on investment opportunities in ecotourism, sustainable forestry and renewable energy to safeguard natural resources and biodiversity,” he said.

He emphasised that through the initiative, innovative financial solutions like green bonds, payments for ecosystem services and CSR contributions could help leverage private capital for conservation efforts.

He also encouraged the Ministry of Finance, Ministry of Natural Resources and Tourism and Ministry of Agriculture to integrate biodiversity into their planning and budgeting processes, while urging scholars and universities to collaborate with BIOFIN on research and training the next generation of biodiversity economics experts.

UNDP Resident Representative, Shigeki Komatsubara, highlighted the importance of exploring alternative financing mechanisms, such as green bonds and blended finance, to attract capital for conservation projects.

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He stressed that the launch was a call to action to rethink conservation financing and adopt innovative solutions to safeguard natural heritage.