The fight against climate change requires significant investments and partnerships between the public and private sectors to create greener economies. The recent approval of the Green Taxonomy of the Dominican Republic marks a turning point in the country’s efforts to accelerate climate financing and promote climate action.
Aligned with the United Nations Sustainable Development Goals for 2030 and the Paris Agreement, the Dominican Republic's Taxonomy aims to engage the financial sector in promoting environmentally responsible economic activities, encouraging sustainable investments, and the development of new products and services that meet sustainability criteria.
The Green Taxonomy is more than just a classification system, it establishes a common framework that enhances transparency and facilitates decision-making based on sustainable criteria, including a gender perspective. This framework paves the way for a transition to a low-carbon economy, a crucial step in our collective fight against climate change.
At the request of the Government of the Dominican Republic, IFC provided advisory services to develop the Green Taxonomy Framework. The Green Taxonomy's development started with clear climate and environmental objectives. These objectives guided the selection of sectors with significant environmental and economic impact. Setting clear objectives ensured the taxonomy's relevance and effectiveness. These objectives included the sustainable use and protection of water and coastal-marine resources, such as rivers, basins, coastal wetlands, and seagrass meadows.
The inclusion of these "blue" activities generated strong interest and support, contributing to the project's acceptance. Developing the Green Taxonomy involved a public consultation and participation process. It started with reviews with the sectoral leaders and was followed by the creation of working groups for each sector. The formal public consultation allowed stakeholders to review and comment on the taxonomy. The consultation helped clarify concepts and address challenges, ensuring a more robust and comprehensive taxonomy for dissemination.
IFC also supported the Sustainable Banking and Finance Network in the development of a Green Protocol for the banks, signed in March 2024. Another achievement is the issuance of Banco Popular's Green Bond. This bank will have the ability to finance activities approved by the SIMV within the framework of the Green Taxonomy.
Moving forward, the focus will be on implementation and continuous improvement of the taxonomy. It will evolve to include additional sectors and refine its content based on user feedback and experiences in the Dominican Republic. Pilot projects supported by IFC and the World Bank will contribute to a better understanding of identifying green assets and highlight areas for improvement.
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