Introduction
The Arab Monetary Fund (AMF) focuses a high priority on green and sustainable finance, as well as achieving the sustainable development goals (SDGs). This commitment is consistent with the global momentum on climate issues, green finance, and carbon emissions management to mitigate climate change risks. In addition to carrying out studies, issuing guidelines, providing training courses and organizing conferences and events, the AMF established the Green and Sustainable Finance Network in Arab Countries (AGREFIN) in January 2023.
Overview of the Arab Green and Sustainable Finance Network
The AGREFIN provides a forum for peer-to-peer learning and exchange of experiences, sharing knowledge, and enhance coordination on sustainable finance issues to stay up with the changing landscape of sustainable financial activities and services. This network brings together senior officials from ministries of finance, central banks, and capital market authorities, as well as experts from international institutions’ partners such as IMF, World Bank and BIS.
The ultimate objective of AGREFIN is to strengthen the financial system's role in managing climate change risks, mobilizing finance for green, low-carbon investments, and supporting the circular carbon economy to improve energy security within the context of the SDGs, as well as puts together the positions of Arab countries in international initiatives relating to climate change and energy security.
AGREFIN’S Secretariat
The AMF serves as the technical secretariat for the AGREFIN, as part of its role within both Councils of Arab Central Banks’ Governors and Arab Finance Ministers. The AMF conducts network meetings and works with the network's work team to develop working papers and studies. These contributions are made during the annual meetings of the Boards of Governors of Central Banks.
Through this network, the AMF actively supports Arab countries' continued attempts to incorporate sustainability into their financial systems. It helps to design policies that address the issues of climate change, promote green and sustainable financing, manage climate change risks, and facilitate the transition to a circular carbon economy (CCE) and enhancing the energy security.
Objectives of the AGRFIN
The Arab Green and Sustainable Finance Network aims to achieve the following objectives:
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Promoting Sustainable Finance Policies, including working with policymakers, regulators, and stakeholders to promote the implementation of sustainable finance rules and practices.
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Promoting Sustainable Finance Practices by raising awareness, providing training programs, and advocating for regulations that support them.
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Carrying out Studies and Research on sustainable financial practices in the Arab world, highlighting good practices, trends, and challenges and provides policy recommendations for enhancing these practices.
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Leveraging partnerships and global expertise to promote Green Finance practices, working with other organizations that enable the exchange of knowledge and expertise, resulting in cooperative activities that promote sustainable finance.
Targeted Activities in Green and Sustainable Finance
AGREFIN intends to engage in a variety of AMF initiatives and working groups within this framework. The following are a tentative list of key activities to be performed by the network:
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Organizing high level meetings and events like Arab Green Finance Day, awarding the finest efforts in Arab countries, and recognizing exceptional performance in green financial instruments.
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Creating a database platform for green finance under ARABSTAT initiative .
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Enhancing sustainable finance infrastructure in Arab countries.
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Developing an index for green and sustainable finance for Arab countries.
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Publishing working papers and studies on green and sustainable finance.
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Reinforcing a comprehensive framework for green investment, bonds, Sukuk and insurance.
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Encouraging Islamic finance to promote green and sustainable financial instruments .
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Developing guidelines and concepts for green and sustainable finance for Arab countries.
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Publishing a yearly summary report on climate-related developments and Arab countries' initiatives in this area.