On 2 December 2025, the Government of the Republic of Zambia officially launched the Zambia Green Finance Taxonomy (ZGFT), establishing a historic framework for sustainable finance in the country. The ZGFT, developed by the Green Finance Mainstreaming Working Group with technical support from the UNDP Biodiversity Finance Initiative (BIOFIN), positions Zambia among the few African nations advancing climate-resilient, nature-positive, and low-carbon development.
Speaking at the launch, Hon. Mike Mposha MP, represented by Permanent Secretary Dr. Douty Chibamba, described the taxonomy as a declaration of Zambia’s ambition to lead in sustainable finance. He emphasized that the ZGFT strengthens the country’s ability to build a resilient, inclusive, and nature-positive economy aligned with national priorities and global sustainability standards.
The ZGFT provides clear technical criteria defining what qualifies as green across eight high-impact sectors: energy, agriculture, forestry, mining, water, transport, tourism, and waste management. It also identifies six environmental objectives, including climate change mitigation and biodiversity protection, ensuring investments align with both national and international sustainability goals.
By establishing a standardized framework, the ZGFT enhances transparency in the financial system and reduces risks of greenwashing. It provides regulators, banks, pension funds, insurers, corporates, and investors with a common reference point to identify, assess, and report green economic activities.
Dr. James Wakiaga, UNDP Resident Representative, represented by Mr. Laurent Rudasingwa, UNDP Zambia Deputy Resident Representative, highlighted the taxonomy’s role in channeling investments into sectors that deliver resilience, long-term growth, and environmental protection. He noted that finance can transform economic pathways when aligned with sustainability priorities.
The ZGFT is interoperable with the European Union, South African, and Kenyan taxonomies, enhancing Zambia’s competitiveness in regional and global markets seeking credible sustainability standards. The framework is expected to mobilize domestic and international green capital, support green bonds and sustainability-linked loans, guide financial institutions in integrating environmental risks, and accelerate private sector participation in the green economy.
BIOFIN Zambia provided critical financial and technical support throughout the development process, ensuring an inclusive and coherent national framework. The government, alongside financial regulators and partners, will now begin the national roll-out of the ZGFT. This includes training sessions, technical clinics, and sector-specific guidance to promote adoption across Zambia’s financial system.
The launch of the ZGFT marks a significant milestone in Zambia’s sustainable development journey, setting a benchmark for green finance in Africa while enabling investments that deliver both economic growth and environmental protection.