Banking sector developing vibrant green financing ecosystem – BoU
Mr Michael Atntigi-Ego. Photo / File
What you need to know:
- Green financing is any structured financial activity that has been created to ensure a better environmental outcome.
With climate change hitting the country hard, the Bank of Uganda says the financial institutions are developing a vibrant green financing ecosystem to mitigate environmental hazards in the economy.
Green financing is any structured financial activity that has been created to ensure a better environmental outcome.
In one of his key messages regarding World Savings Day, the deputy governor Bank of Uganda, Mr Michael Atntigi-Ego said: “The financial sector is developing a vibrant green financing ecosystem by harnessing technology and innovation to build markets and solutions for transitioning to a low-carbon future. We also aim to empower people with effective knowledge and capabilities to save money and access other financial services while minimising their carbon footprint.”
For example, Dr Ating-Ego said savers can access financial services such as savings, investments, payments, insurance, and loans via mobile phones without travelling long distances to physical bricks and mortar branches of financial institutions using carbon-emitting vehicles.
Dr Atingi-Ego said it is incumbent on the financial sector to build and extend affordable and user-friendly green financial solutions to the underserved and small earners nationwide.
He advised savers to entrust their money with regulated financial institutions rather than keeping it in houses and pots which is highly risky.
“Saving money for future goals and protecting the environment are complementary aspects of sustainability. Every small amount, every little step to reduce carbon emissions matters. Timely and sustainable saving is smart saving,” he said.
The executive director of Uganda Bankers’ Association, Mr Wilbrod Owor, said green financing is gaining attention by the day.
“The realities of responsibly harnessing what our environment has to offer is with us. Sustainability issues are a big and crucial agenda item today more than ever and the expectations falling on financial institutions is getting heavier by the day,” he said.
