Palestine Monetary Authority Circular No. 5/2025: Outputs of the Second Meeting of the Sustainable Finance Working Group

PALESTINE MONETARY AUTHORITY

Circular No. (5/2025) To all banks operating in Palestine Date: Wednesday, 12 November 2025

Subject: Outputs of the Second Meeting of the Sustainable Finance Working Group

Further to Circulars No. (2025/30) regarding the formation of the Financial Sector Working Group for Sustainable Finance, and No. (2025/87) regarding the outputs of the first meeting, and after holding the second meeting of the Working Group on 19/10/2025 with participation from members of banks and specialized lending institutions, during which the main axes of the Palestine Monetary Authority's roadmap for sustainable finance and the resulting action plan were discussed, we wish to confirm the following outputs of the second meeting:

1. The internal working group in each bank is committed to implementing the tasks and responsibilities specified in the group's charter, and continuously monitoring the level of progress and achievement. In this regard, each bank must provide the Palestine Monetary Authority with a periodic quarterly progress report outlining the main activities, developments, and related challenges, starting from the end of 2025, and this shall be considered part of the supervisory report on sustainable finance.

2. Enhancing the readiness of the financial sector and aligning its practices with international developments, standards, and future regulatory requirements. To achieve this, upcoming meetings and sessions will review and exchange expertise on the main frameworks and practices related to sustainable finance and climate-related financial risks. Examples include:

   • Local frameworks, legislation, and initiatives related to the subject.
   • Disclosure and transparency frameworks, such as the Basel Committee's recommendations, TCFD guidelines, and international sustainability standards IFRS S1 and IFRS S2 - ISSB.
   • Principles and practices for developing sustainable and green financial products and services, and encouraging innovation in this field.
   • Sustainable Taxonomies and sustainable economic sectors, such as those classified globally (Global Industry Classification Standard - GICS).

3. Beginning the preparation of an action plan for the financial sector to ensure the integration of efforts and enhance innovation in sustainable products and services, in accordance with the Palestine Monetary Authority's roadmap for sustainable finance.

Supervisory Group Palestine Monetary Authority

Attachment:

• Minutes of the Second Meeting of the Working Group.

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