Zambia Launches First-Ever Green Finance Taxonomy
Zambia has unveiled its first-ever Green Finance Taxonomy (ZGFT), establishing a national framework that positions the country as a regional leader in sustainable finance. The taxonomy was developed by the Green Finance Mainstreaming Working Group with technical support from the United Nations Development Programme’s Biodiversity Finance Initiative (BIOFIN).
The ZGFT provides a science-based system to identify environmentally sustainable economic activities across eight key sectors, including energy, agriculture, forestry, mining, water, transport, tourism, and waste management. It also sets six environmental objectives, ranging from climate change mitigation to biodiversity protection, ensuring investments align with national and global sustainability priorities.
Speaking at the launch, the Ministry of Green Economy and Environment’s Permanent Secretary, Dr Douty Chibamba, said the taxonomy “…positions Zambia as a regional leader in sustainable finance and strengthens our ability to build a resilient, inclusive and nature-positive economy.”
The taxonomy aims to enhance transparency, reduce risks of greenwashing, and provide financial institutions, investors, and regulators with a common reference for identifying and reporting green activities. It is interoperable with the EU, South African, and Kenyan taxonomies, boosting Zambia’s competitiveness in regional and international markets.
Dr James Wakiaga, UNDP Resident Representative, represented by Deputy Resident Representative Laurent Rudasingwa, added: “Finance has the power to transform economic pathways. This taxonomy equips Zambia to channel investment into sectors that deliver resilience, long-term growth and environmental protection.”
BIOFIN Zambia played a critical role in providing technical and financial guidance during the development of the ZGFT. The Government, in collaboration with financial regulators and partners, will now roll out the taxonomy nationally, including sector-specific training, technical clinics, and guidance for adoption across Zambia’s financial system.
