Circular No. 30: Establishment of the Sustainable Finance Working Group

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Circular No. (30) of 2025 Establishment of the Sustainable Finance Working Group

Date: April 24, 2025 Palestine Monetary Authority

To: All Banks and Financial Institutions Covered by the Directives

The Palestine Monetary Authority (PMA) hereby issues this directive regarding the establishment and operational framework of the Sustainable Finance Working Group.

1. Establishment of the ESG/Sustainable Finance Working Group The PMA establishes a dedicated Sustainable Finance (ESG) Working Group to oversee, coordinate, and advance environmental, social, and governance integration across the Palestinian financial sector.

2. Mandate and Objectives The Working Group is tasked with: • Developing standardized ESG reporting frameworks and disclosure guidelines for financial institutions. • Monitoring compliance with sustainable finance principles and regulatory expectations. • Facilitating capacity building, knowledge sharing, and stakeholder engagement among banks, insurance companies, and other licensed entities. • Advising the PMA on policy updates related to green financing, climate risk assessment, and sustainable investment products.

3. Operational Mechanism and Reporting The Working Group shall operate under the direct supervision of the PMA’s Board of Directors. It will convene quarterly meetings, submit biannual progress reports to the Authority, and maintain a centralized registry of ESG initiatives and compliance metrics. Financial institutions are required to designate an ESG focal point to liaise with the Working Group and ensure timely data submission.

4. Effective Date and Compliance This directive takes effect from the date of issuance (April 24, 2025). All licensed banks, financial institutions, and insurance companies operating in Palestine must align their internal policies, risk management frameworks, and reporting practices with the Working Group’s guidelines within six months of this circular’s publication.

5. General Provisions Non-compliance with the requirements outlined herein may result in regulatory follow-up actions, including corrective measures or reporting adjustments as determined by the PMA. The Authority reserves the right to amend or supplement this directive based on market developments and international best practices.

Issued by the Palestine Monetary Authority Ramallah, Palestine April 24, 2025