Global Green Growth Institute supports Sri Lanka’s Climate Action and Green Finance
By: Staff Writer
October 21, Colombo (LNW): Sri Lanka is advancing in climate action and sustainable finance with crucial support from the Global Green Growth Institute (GGGI). At the 13th Assembly and 17th Council Joint Session of GGGI in Seoul, Korea, Prabath Chandrakeerthi, Secretary of the Ministry of Environment, outlined key initiatives enhancing Sri Lanka’s climate resilience and sustainable development.
A major focus of the partnership is the revision of Sri Lanka’s National Adaptation Plan (NAP), which now includes the development of Provincial Adaptation Plans (PAPs) tailored to each of the country’s nine provinces. These plans are designed to enable region-specific climate adaptation actions, unlocking new opportunities for investment and paving the way for localized climate action.
GGGI has also been instrumental in promoting sustainable finance initiatives in Sri Lanka. It has developed frameworks for sovereign and private sector green bond issuances.
A notable example is GGGI’s support to the Commercial Bank of Ceylon, which plans to raise Rs. 5 billion ($17 million) through a green bond issuance on the Colombo Stock Exchange in September 2024.
This initiative represents a significant step toward securing long-term financing for climate mitigation and adaptation projects, with GGGI also aiding the development of Sri Lanka’s sovereign bond framework.
On the international front, GGGI is strengthening Sri Lanka’s capacity for carbon trading under Article 6 of the Paris Agreement.
Together, they have developed an Article 6 readiness initiative to align Sri Lanka’s mitigation activities with global carbon market standards. This initiative is set to prepare Sri Lanka for effective participation in the global carbon market, allowing it to trade carbon credits efficiently.
GGGI’s efforts in Sri Lanka extend beyond finance and carbon trading. It actively supports the transition to e-mobility, aiming to reduce greenhouse gas emissions and improve air quality through low-carbon urban transportation solutions. This initiative aligns with Sri Lanka’s broader goals of low-carbon city development and reducing its carbon footprint.
The partnership also includes a focus on the sustainability of Sri Lanka’s tea industry, a vital export sector. The “Strengthening Tea Industry Sustainability in Sri Lanka” initiative aims to enhance environmental practices within the tea sector, ensuring its long-term sustainability.
As Vice President and Co-Chair of the GGGI Assembly and Council, Sri Lanka is set to expand its collaboration with GGGI in sustainable development projects. Chandrakeerthi expressed optimism about positioning Sri Lanka as a leader in green growth and climate resilience in the region.
Through initiatives in climate adaptation, green finance, carbon trading, and sustainable industry practices, Sri Lanka is making significant strides towards its environmental goals, with GGGI playing a key role in driving these advancements.
