Inclusive Green Finance Project (Phase III)

The members of the Alliance for Financial Inclusion (AFI) view financial inclusion as a key factor for the achievement of SDGs. The AFI provides central banks, financial supervisory authorities, finance ministries and other relevant actors in over 80 developing markets and emerging economies with a global platform for financial inclusion. Together, these parties are working to develop innovative and effective political strategies for combating climate change and adapting to its impacts. The project is also offering peer learning, resource- and expertise-building, public-private dialogue, institutional analysis and other services for AFI members, with the aim of ensuring that they are then in a position to implement relevant national policy goals. More than 200 decision makers will benefit from these professional training programmes. Insights will be shared in the AFI network and therefore also with financial regulatory bodies.

Project data

IKI funding: 6,636,068.00 €
Duration: 06/2018 till 12/2027
Status: open
Implementing organisation: Alliance for Financial Inclusion (AFI)
Political Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern

United Nations Environment Programme (UN Environment)
Online: https://www.youtube.com/watch?v=Qf83vEfYOjs

https://www.youtube.com/watch?v=7EYLrNxVYVU

https://www.youtube.com/watch?v=HkVSkOkBGA0

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State of implementation/results

Inclusive Green Finance (IGF) focuses on policies that help people and small businesses access financial services supporting climate resilience and environmental sustainability. Through IGF policy development, central banks and financial regulators ensure financial systems are inclusive and equipped to respond to climate impacts, especially for the most vulnerable.-- Since 2018, the project has supported financial policymakers in developing and emerging economies to integrate climate and environmental considerations into financial regulations and strategies, ensuring that green finance developments are inclusive.
Momentum for IGF is growing across the AFI network, with 36 policy changes reported by 19 AFI members linking financial inclusion with climate action. These efforts contribute to the Paris Agreement and national climate targets.
At the 2025 Global Policy Forum in Swakopmund, Namibia, three key milestones were achieved. A high-level session explored how digital finance can stay inclusive during climate crises, focusing on women, displaced people, and remote communities. The IGF Working Group met in person, with representatives from more than 38 institutions sharing experiences and strategies to align financial systems with climate goals. Two regions advanced significantly: Eastern Europe and Central Asia adopted an IGF Declaration, and Latin America and the Caribbean approved a new IGF Roadmap to guide future action.
Three national in-country projects were launched in Tonga, Mongolia, and Pakistan, where central banks are developing policies to expand access to green and climate-resilient financial services.-- In April 2025, AFI hosted a public-private dialogue at the IMF and World Bank Spring Meetings, highlighting how regulators and partners can mobilise climate finance ensuring inclusion of low-income and underserved groups.
In June 2025, AFI met with key international bodies - the Basel Committee, BIS Innovation Hub, Financial Stability Board, IAIS, and IADI - to advocate for more inclusive and climate-smart regulations, especially for smaller institutions and vulnerable countries.
Looking ahead to COP30 in Brazil, the project will host discussions on mobilizing blended finance for IGF implementation and applying climate disclosure standards that are fair, practical, and inclusive. These sessions aim to showcase real-world examples and encourage greater investment in climate-aligned financial systems that leave no one behind.
Preparations are also underway for the 2026 IGF Conference, a milestone for endorsing the IGF Global Compact. Growing enthusiasm across the AFI network and among partners positions the Compact as a shared vision for scaling IGF. Momentum from peer learning, donor collaboration, and policy innovation is laying the foundation for a globally coordinated IGF agenda.

Latest Update:
12/2025