Championing green finance in Zambia: BIOFIN hosts green taxonomy validation workshop

Lusaka, Zambia – 3 April 2025 – The United Nations Development Programme’s Biodiversity Finance Initiative (UNDP BIOFIN) Zambia, in partnership with the Government of Zambia and the Green Finance Mainstreaming Working Group (GFMWG), hosted a stakeholder validation workshop to finalize the Zambia Green Finance Taxonomy (ZGFT) and its associated tagging and reporting system.

The workshop convened policymakers, financial regulators, development partners, and sectoral ministries to co-create a robust taxonomy that clearly defines green investments and strengthens the country's sustainable finance framework.

“This validation workshop marks a major milestone in our shared commitment to a transparent, sustainable, and resilient financial system that aligns with Zambia’s biodiversity and climate goals,” said Carol M. Zulu, Head of the Energy and Environment Unit at UNDP Zambia.

Photo: Ms. Carol M. Zulu, Head of Energy and Environment Unit at UNDP Zambia

Representing the Government of Zambia, Ephraim M. Shitima, Director of Green Economy and Climate Change, emphasized the taxonomy’s strategic value. “With clear definitions and criteria for green investments, this tool will guide financial institutions, investors, and policymakers in directing sustainable capital flows.”

Participants reviewed and refined the taxonomy’s structure to ensure alignment with global best practices while tailoring it to Zambia’s unique environmental and economic context. Eng. Suzanna Chulu, a private sector energy leader, praised the process for its inclusivity: “A participatory approach is vital to developing a credible and accepted taxonomy.”

Photo: Eng. Suzanna Chulu, CEO and Founder, Tisuke Group

Unlocking Impact: What the Green Taxonomy Means for Zambia

The validation of Zambia’s Green Finance Taxonomy signals a transformative step forward, unlocking broad-based impact across financial, environmental, regulatory, and institutional spheres.

Financial Impact:

• Provides financial institutions with a standardized framework for issuing green loans and managing sustainable investment portfolios.
• Enhances investor confidence and ensures consistency across financial markets.
• Supports alignment of capital flows with Zambia’s national development and sustainability targets.

Biodiversity & Climate Impact:

• Integrates biodiversity and climate indicators into financial reporting systems.
• Encourages investment in renewable energy, sustainable agriculture, eco-tourism, and forest conservation - sectors with both economic potential and environmental benefits.

Regulatory Impact:

• Establishes a clear classification system for sustainable investments, facilitating oversight by regulatory bodies.
• Aligns Zambia with global climate disclosure standards, positioning it as a regional leader in sustainable finance.

Institutional Impact:

• Strengthens coordination among financial institutions, ministries, and the private sector.
• Introduces a streamlined data collection and reporting system to track contributions to Zambia’s green economy.

What’s Next? From Validation to Implementation

After successful validation, the finalized taxonomy will be submitted to the Zambian government for official adoption. A pilot phase will be launched with selected financial institutions to test the tagging and reporting system. These pilots will provide real-world insights to guide further refinement.

“This taxonomy will undoubtedly align Zambia’s financial sector with national environmental priorities and unlock new avenues for sustainable investment,” said Frederick Mulenga, Executive Head of Treasury at Zambia National Commercial Bank.

Photo: Mr. Frederick Mulenga, Executive Head of Treasury, Zambia National Commercial Bank

Scaling Up: A Vision for Long-Term Impact

UNDP BIOFIN’s work in Zambia goes beyond validation. The green taxonomy initiative is part of a broader push to accelerate the country’s transition toward a greener, more resilient economy. It aims to enhance biodiversity financing, align financial systems with environmental priorities, and spur inclusive, sustainable growth.

As Zambia charts its path forward, it is setting a powerful example for the region by leveraging finance as a tool for economic resilience and environmental stewardship.