Sri Lanka advances climate action and green finance with GGGI support

Environment Ministry Secretary Prabath Chandrakeerthi

Sri Lanka is making significant strides in climate action and sustainable finance, with support from the Global Green Growth Institute (GGGI). 

Speaking at the 13th Assembly and 17th Council Joint Session of GGGI in Seoul, Korea, Environment, Wildlife, Forest Resources, Water Supply, Plantations, and Community Infrastructure Ministry Secretary Prabath Chandrakeerthi outlined the key initiatives being undertaken to enhance Sri Lanka’s climate resilience and sustainable development.

A major highlight of the partnership between GGGI and the Sri Lankan Government is the ongoing revision of Sri Lanka’s National Adaptation Plan (NAP). This updated plan includes the creation of the country’s first-ever Provincial Adaptation Plans (PAPs), which reflect ambitious climate adaptation actions tailored to each of Sri Lanka’s nine provinces. According to Chandrakeerthi, these efforts have unlocked new opportunities for adaptation investments, paving the way for more region-specific climate action.

GGGI is also playing a pivotal role in supporting sustainable finance initiatives in Sri Lanka. As part of its broader effort to promote green and social bonds, GGGI has helped develop frameworks for both sovereign and private sector green bond issuances. Notably, GGGI has assisted Commercial Bank of Ceylon in announcing its plans to raise Rs. 5 billion ($ 17 million) through a green bond issuance on the Colombo Stock Exchange in September 2024. 

This marks a major step toward securing cost-effective, long-term financing for climate mitigation and adaptation projects. In addition, GGGI has provided technical support to the Finance Ministry for the development of Sri Lanka’s sovereign bond framework.

On the global climate stage, GGGI is bolstering Sri Lanka’s capacity for Article 6 carbon trading under the Paris Agreement. The two parties have jointly developed an Article 6 readiness initiative, designed to align Sri Lanka’s mitigation activities with both national and international carbon market rules. By fostering the development of Mitigation Activity Idea Notes (MAINs) and providing targeted training, this initiative aims to prepare Sri Lanka for successful participation in the global carbon market, allowing the country to trade carbon credits effectively.

In addition to these financial and climate mitigation efforts, GGGI is actively promoting the transition to e-mobility in Sri Lanka. Through a comprehensive pre-feasibility study conducted in 2021-2022, GGGI has outlined strategies to reduce greenhouse gas (GHG) emissions and improve air quality by promoting low-carbon urban transportation solutions. This focus on greener mobility aligns with the broader goals of low-carbon city development and supports Sri Lanka’s commitments to reducing its carbon footprint.

GGGI’s involvement in Sri Lanka also extends to the country’s critical tea industry. The “Strengthening Tea Industry Sustainability in Sri Lanka” initiative, launched in partnership with the Ministry of Agriculture and Plantation Industries, aims to enhance the environmental sustainability of one of Sri Lanka’s most vital export sectors.

As Vice President and Co-Chair of the GGGI Assembly and Council, Sri Lanka is poised to deepen its partnership with GGGI in the years ahead. Chandrakeerthi expressed optimism about continuing to collaborate on sustainable development projects, positioning Sri Lanka as a leader in green growth and climate resilience in the region.

Through its initiatives in climate adaptation, green finance, carbon trading, and sustainable industry practices, Sri Lanka is making substantial progress toward its long-term environmental goals, with GGGI’s partnership serving as a catalyst for these advancements.