The Uganda Institute of Banking and Financial Services has called on commercial banks to increase funding for projects that reduce carbon emissions.
Goretti Masadde, the chief executive officer of the banking institute, noted that a cluster of the country’s biggest lenders is pumping billions into companies with ties to deforestation risks and other unhealthy investments.
Massade made the remarks at the 3rd Edition of the Annual Banking and Financial Services Awareness month, a grand public awareness session that brought together providers and users of banking and financial services.
This year’s edition was held under the theme: “Start Small Grow Big, Be GreenSmart”.
“Banks should be funding projects that reduce carbon emissions but not those that are escalating it. Financial services can do a lot to either mitigate, adapt or even promote biodiversity conservation. We are telling them to increasingly make more green finance available and accessible to fund green projects such as wind and solar farms, and to invest in businesses themselves to help them become greener,” Masadde told reporters.
Green financing is a loan or investment that supports environmentally-friendly activity, such as purchasing environmentally-friendly goods and services or building environmentally-friendly infrastructure.
Masadde the institute would launch a business development services support to ensure that borrowers are trained on green priority areas.
Mona Muguma Ssebuliba, the CEO aBi Finance, called on financial institutions to appreciate the magnitude and risks associated with climate change.
Mugume said the institution has launched a dedicated green investment fund to help mitigate climate change and support biodiversity conservation.
She revealed that green financing is critical in supporting the transition to a low-carbon economy.
She observed that globally, Uganda is the 12th most vulnerable and the 49th least prepared out of 195 countries, to deal with vagaries of climate change.
The Green Finance Exhibition featured enterprises created out of a need to respond to a sustainable theme – Sustainable finance, forests, renewable energy, recycled items, green building, and gender inclusiveness showcasing their latest products and services, technologies and best practices developed through environmental sustainability.